7 4

M 82- NOMIN ATION OF HOWARD [MORGAN TO BE A ME MBER OF THE GOVtRNMENl FEDERA L POWER COMMISSION Storage

H E A R IN G S BEFORE THE COMMITTEE ON INTERS TAT E AND FOREIGN COMMERCE UNITED STATES SENATE EIG HT Y-SEVE NT H CONGRESS FIR ST SESSION

THE NOMINATION OF HOWARD MORGAN TO BE A MEMBER OF THE FEDERAL POWER COMMISSION FOR THE REMAIN­ DER OF THE TERM EXPIR ING JUNE 22, 1963

APR IL 11 AND MAY 2, 1961

Pri nte d for the use of the Committee on In terstate and Foreign Commerce ■bv nr . •sa y

COMMITTEE ON INTERSTATE AND FOREIGN COMMERCE

WA RR EN G. MAG NUSON, W as hi ng to n, C hair m an JO HN O. PA STOR E, Rh ode Is la nd AN DR EW F. SC HOEPP EL , Kan sa s A S. MIK E MONRONEY, Ok laho ma JO HN MAR SH AL L BU TL ER , M ar yl an d GE OR GE A. SM AT HE RS , Flo rida NO RR IS COTTON, New H am ps hi re STR OM THUR MO ND , So uth Car ol in a CLIF FO RD P. CA SE, New Je rs ey FR AN K J. LA US CH E, Ohio TH RU ST ON B. MORTO N, Ke ntuc ky RA LP H YARBOROUGH, Tex as HUGH SCOT T, Pen nsy lv an ia CL AI R EN GL E, C al ifor ni a E. L. BA RT LE TT , Alask a VANCE HAR TK E, In dia na GA LE W. McG EE , Wyoming E dward J ar rett , C h ie f C le rk J er em ia h J. K en ne y , Jr. , A s s is ta n t C h ie f C le rk H arold I. B ay nton , C h ie f C ounse l J oh n M. M cE lroy , A s s is ta n t C hie f C ounse l II CONTENTS

Statem ent of— Green, Hon. Edith, a U.S. Representative for the Third District of Page the State of Oregon, House Office Building, Washington, D.C____ 2 Morgan, Howard, nominee, Federal Power Commission, Sisters, Oreg, 5, 33 Morse, Hon. Wayne, a U.S. Senator from the State of Oregon, Senate Office Building, Washington, D.C ______4 Neuberger, Hon. Maurine B., a U.S. Senator from the S tate of Oregon, Senate Office Building, Washington, D.C ______1 Ullman, Hon. Al, a U.S. Representative for the Second Distric t of the State of Oregon, House Office Building, Washington, D.C____ 3 Letters, telegrams, etc.: Healy, Frank J., corporation commissioner, State of Oregon, Salem, Oreg------45 Maison, H. G., superintendent, Department of State Police, State of Oregon, Salem, Oreg______42, 43 Morgan, Howard, nominee, Federal Power Commission, Sisters, Oreg_ 34 Munk, Frank, professor of political science, Reed College, Portlan d, Oreg------74 Wilson, Bob, a U.S. Representative for th e 30th District of California, House Office Building, Washington, D.C______75 Appendix______85

nx : -<«$ i? z »< « NOMINATION OF HOWARD MORGAN, OF OREGON, TO BE A MEMBER OF THE FED ERA L POW ER COMMISSION For the Rema ind er of the Term Expiring June 22, 19 63 1

TUESD AY, A P R IL 11 , 1961 U.S. Senate, Committee on I nterstate and F oreign Commerce, Was king ton, D.G. The committee met, pursuant to notice, at 10:10 a.m., in room 5110, New Senate Office Building, Hon. John O. Pastore (acting chairman of the committee) presiding. Senator P astore. With the indulgence of our many guests here this morning, we would like to call this meeting to order. The first item of business before this committee is the nomination of Howard Morgan of Oregon to be a member of the Federal Power Commission for the remainder of the term expiring June 22, 1963. This is a vacancy resulting from the death last year of Commissioner Hussey. This position is now held under a recess appointment by Mr. Paul A. Sweeney, Democrat, of Maryland. We have a number of very distinguished Members of Congress who want to be heard this morning and the names I have here are Senator Neuberger, Representative Edith Green, Representative Ullman; and then we have Mr. William Berg, J r., administrative assistant to Sen­ ator Wayne Morse; and Mr. Howard Morgan, the nominee. I see my distinguished friend, Mr. Gore. Are you going to testify on this, Mr. Gore? Senator Gore. I will be glad to support him but I am here to testify on behalf of Mr. Swidler. Senator Pastore. Our first witness is Senator Maurine B. Neu­ berger. It is always delightful to have you here, Mrs. Neuberger.

STATEMENT OF HON. MAURINE B. NEUBERGER, A U.S. SENATOR FROM THE STATE OF OREGON Senator Neuberger. Thank you. Mr. Chairman and members of the committee, I come to present to you a fellow Oregonian whom I am very proud to have with me here----- Senator P astore. May I interrupt you for just a moment ? Is Mr. Morgan here ?

1 T hi s is th e va canc y re su lt in g fro m th e de at h la st ye ar of Co mmissio ne r Hus se y. This po sition is now he ld un de r a recess ap poin tm en t by Mr. Pau l A. Sween ey, Dem oc rat, of M ar yl an d. 1 2 NOMINATIO N OF HOW ARD MORGAN

Senator Neuberger. Yes. Senator P astore. Will you come forward and sit in the witness chair ? I am sorry for the interruption. Senator Neuberger. Mr. Morgan is well known in our State. I am especially proud of his association with my husband when they were colleagues in the Oregon State Legislature. Howard received the acclaim of Gov. Robert Holmes, of Oregon, when he was appointed utility commissioner. There were those in the State who had some reservations about this appointment. Yet after Mr. Morgan had been serving in the capacity which he did, many changed their minds. Even though their points of view might have differed, they stood up and spoke for his fairness and commended him highly. Editorial comment around our State afte r this appointment was made by the President has been of great interest. I would like to quote from some of these. The Medford Mail Tribune, which is an important paper in the southern part of the State, observed th at Mr. Morgan— is dedicated to serving his concept of the public interest, the interests of all the people rather than a few. Another prominent paper, the Coos Bay World, commented: It would have been difficult for Pre sident Kennedy to have found a better qualified man by knowledge, philosophy, and temperament than Howard Morgan for appointment to the Federal Power Commission. I certainly hope you will consider his appointment favorably, and I commend him to you. Thank you. Senator P astore. Thank you very much. Are there any questions of Mrs. Neuberger ? Senator Monroney ? Senator M onroney. The highest recommendations tha t would be received would be the recommendation of Dick Neuberger, and if he had served with Mr. Morgan and had confidence and faith in him, which Mrs. Neuberger has as well, he certainly should be most care­ fully considered by this committee for this appointment. Senator P astore. Senator Schoeppel ? Senator Schoeppel. No questions. Senator P astore. Senator Bartlett ? Senator B artlett. N o questions. I am very glad to see Senator Neuberger here endorsing the appointment of Mr. Morgan, whom I have known for many years. Senator P astore. Thank you, Mrs. Neuberger. Our next witness is Representative Edith Green.

STATEM ENT OF HON. ED ITH GREEN, RE PR ESEN TA TIVE IN TH E CONGRESS FROM TH E STATE OF OREGON Senator P astore. We are honored by your presence this morning, Mrs. Congresswoman. Mrs. Green. Thank you very much, Mr. Chairman. NO MINA TIO N OF HOW ARD MORGAN 3

It is with a great deal of pleasure and pride that I do appear before this committee with Howard Morgan. I have known him for many, many years and I of course am extremely pleased that the President has appointed him to a position on the Federal Power Commission. Mr. Morgan is a person of tremendous intellectual capacity. He is a man of unquestioned integrity and courage and he is also a very articulate spokesman for those causes in which he believes. I have known not only him but also his wonderful family for a long period of time. It seems to me that he has served his State exceedingly well and I am sure that the people of Oregon will take great pride, both Republicans and Democrats, in the fact that his talents have been recognized by this administration. I am sure tha t they also are confident tha t he will spend his seem­ ingly unlimited energies in a position where he has a great dedication to the public interest. I note tha t Mr. Bill Berg is going to present a statement by the senior Senator from Oregon giving more of Mr. Morgan’s background and his experience so I will not take the time of the committee in duplicating that. Senator Pastore. Thank you very much. Senator Monroney ? Senator Monroney. I have no questions, thank you. Senator P astore. Senator Schoeppel ? Senator Schoeppel. I have no questions, thank you, Mrs. Green. Senator Pastore. Senator Bartlett ? Senator B artlett. No questions. Senator Pastore. Thank you very much, Mrs. Green. It was a pleasure to have had you. Our next witness is Representative Ullman.

STATEM ENT OF HON. AL ULLMAN, RE PR ES EN TA TIVE IN TH E CONGRESS FROM TH E STA TE OF OREGON

Mr. Ullman. Mr. Chairman, members of the committee, I am particularly honored to be here today because Howard Morgan is a representative of my district in Oregon. I have known Howard for many, many years and I think if there were one word to describe Mr. Morgan better than any other word, i t would be “integrity.” In his many years of public life, he has dealt with the problems before him without fea r or favor. In my opinion, he has represented that which needs to be represented more than anything else on this Commission, and tha t is the public interest. He is an articulate spokesman. As a matter of fact, I know of no one, in either public or private life, who is more articulate. He has a keen perception of the problems in this particular area dealt with by this Commission. He is a student and a keen student, an ardent one, a hard worker. He has had wide experience in the fields of endeavor covered by this Commission. In my opinion, the United States is indeed fortunate to have as a candidate for this office and as a nominee, a man of the integrity and the capacity of Howard Morgan. I predict that he will make a great record of public service in his term on this Commission and I highly recommend him to you. Mr. Chairman. 4 NOMIN ATION OF HOW ARD MORGAN

Senator P astore. Thank you very much, Mr. Congressman. Senator Monroney ? Senator Monroney. I have no questions. Senator P astore. Senator Schoeppel ? Senator Sciioeppel. I have no questions. Senator P astore. Senator Bartlett? Senator Bartlett. N o questions. Senator P astore. Senator Cotton ? Senator Cotton. N o questions, thank you. Senator P astore. Thank you very much, Mr. Congressman. Our next witness is Mr. William Berg, Jr., administrative assistant to Senator Wayne Morse.

STATEMENT OF EON. WAYNE MORSE, U.S. SENATOR FROM THE STATE OF OREGON, PRESE NTED BY WILLIAM BERG, AD MINIS ­ TR AT IVE ASSISTANT TO SENATOR MORSE

Mr. Berg. Mr. Chairman and members of the committee, Mr. Morse regrets very much it was impossible for him to be here this morning. He had a commitment of long standing to be present in Oregon. The Senator’s statement is as follows: It is a special privilege and a pleasure for me to inform the members of the committee of my very high esteem for Mr. Howard Morgan, an outstand ing citizen of Oregon who has been nominated for the position of Fed eral Power Commissioner. For many years I have been of the opinion th at Howard Morgan would be Ideally suited to serve in one of the Fed eral regulatory agencies in a position requiring a high degree of intelligence, discretion, and integrity. This is what prompted me to write to President Kennedy on Janu ary 9, 1961, urging the President to give consideration to the appointment of Mr. Morgan to a Federal post. In my letter to the President I said : “Another man I wish to mention is Mr. Howard Morgan, former State chair­ man of the Democratic Party in Oregon and chairman of the Oregon State Public Utilities Commission under Governor Holmes’ adm inistration. “Morgan is one of the most able men serving in the Democratic Party, not only in Oregon but along the Pacific coast. When Mr. Joseph Eastm an was Chairman of the Interstate Commerce Commission, Howard Morgan was one of his top executive assistants. Morgan received his training under Eastm an. For many years in Oregon, we have considered Morgan to be the best informed man in the Democratic Party on interstate commerce, public utilities, and other regu­ lato ry agency matters. “You would do yourself a great favor if you advised Dean Landis to look into Morgan's record at once, with the thought in mind of appointing him to a very high position in connection with one of our adm inistrative agencies. I cann ot think of a better qualified person for an appointment to the Inter sta te Commerce Commission or for that matter, to any one of the other regulatory agencies.” It was with special satisfaction, therefore, th at I received the news th at Mr. Morgan had been nominated for the position now under consideration by the committee. By background and experience, Morgan is ideally suited for the position of Federal Power Commissioner. In college and in graduate school he placed em­ phasis on courses th at would prepare him for work in the are a of interstate commerce. For example, his senior thesis at Reed College was entitled “Eco­ nomic Background of the Inter sta te Commerce Act of 1935.” Mr. Morgan completed his work at Reed College, Portland, Oreg., in 1940 and entered gra duate school a t the University of California in 1941. He was a can­ didate for the master’s degree and was engaged in research on a thesis dealing with projKtsed extensions of the Interst ate Commerce Act. His studies in gra d­ uate school were interrupted by the request he received to serve in Washington, D.C., in the Office of Defense Transporta tion. The experience he obtained in NO MINATIO N OF HOW ARD MORGAN 5 serving under such an illustrious public servan t as Joseph B. E astm an, Dire ctor of Defense Transporta tion, is in itself an excellent recommendation for the post now under consideration. From 1943 to 1946 the nominee served with distinctio n in the Naval Air Tra nsp ort Service of the U.S. Navy. He retired with the rank of lieutenant. At the close of the war, Mr. Morgan engaged in the construction machinery business and served as tran spo rtation consultant to the Oregon State Grange. In 1948 to the present time he lias also engaged in livestock ranching, first at his sheep ranch nea r Monmouth and more recently at his cattle ranch near Sisters, Oreg. From 1949 to 1951 Mr. Morgan served as a member of the house of repre­ sentatives in the Oregon State Legislature. From 1957 to 1959 he served with distinction as public utilities commissioner of the State of Oregon. I regard him—and many people in Oregon share my view—as one of the finest and most able public utilities commissioners ever to have served in the Sta te of Oregon. The selection of Mr. Morgan for membership on the Federal Power Commis­ sion would be most fortu nate for the United States. He would bring to the Commission his very fine experience as a businessman and as a public servant. In particular, he would bring to the Commission a point of view th at I regard as of utmost importance, namely, that an Administrator’s job is to car ry out the law as Congress dra fted the law and not to superimpose his own ideas of what the law should be. It is with utmost sincerity th at I urge the committee’s prompt and favorable action on this nomination because, in my opinion, it relates to a man of tre ­ mendous ability and inte grity who is a public servan t of the highest type. To the committee I express my appreciation for having been given this oppor­ tun ity to speak on behalf of an outstanding citizen of Oregon. Senator Pastore. Thank you very much, Mr. Berg. Mr. Berg. Thank you. Senator Pastore. Senator Monroney ? Senator Monroney. I have no questions. Senator Pastore. Senator Schoeppel ? Senator Sciioeppel. I have no questions, thank you. Senator Pastore. Senator Bartlett? Senator Bartlett. No questions. Senator P astore. Senator Cotton? Senator Cotton. No questions. Senator Pastore. Thank you very much. Air. Berg. Thank you. Senator Pastore. Senator Scott? Senator Scott. No questions.

STATEM ENT OE HOWARD MORGAN, OF OREGON, NOMIN EE TO BE A MEMBER OF TH E FEDE RA L POWE R COMMISSION Senator Pastore. Mr. Morgan, I have before me a biographical sketch of your background, your experience. Are you familiar with it? Air. AIorgan. Yes. Senator Pastore. Do you want to add anything to it ? Air. AIorgan. No, sir. (The biographical sketch follows:)

B iographic al Sketc h, H oward Morgan, N ominat ed Marc h 21, 196 1, To B e a Memb er of the F ederal P ower Com mission for the R emain der of th e T erm E xp iring J un e 2 2, 19 63 Mr. Howard Morgan, fo rme r public u tility commissioner of th e State of Oregon and presently owner and operator of a livestock ranch at Sisters, Oreg., is 47 yea rs old and a Democrat. 69326— 61------2 6 NO MINATIO N OF HOW ARD MORGAN

Mr. Morgan graduated from the public schools of Portland, Oreg., and from Reed College (1940) where he majored in economics and wrote a gradua ting thesis in public utility regulation. He also served as student body president in his senior year. After graduate work in economics and the adm inistrative law of utility regulation at the University of Californ ia (Berkeley), he served under the direction of the late Joseph B. Eastm an in the Office of Defense Transporta tion during 1941-42. From 1943 to 1946, Mr. Morgan served in various wa r the ate rs as operation s officer with the Naval Air T ransport Service. Afte r the war, he engaged in practice as transp ortation consultan t, and in 1948 purchased a large livestock ranch. He has remained in this occupation since th at time. In 1949-51, Mr. Morgan served as a member of the Oregon Legislature, and from 1952 through 1956 as chairman of the Democratic Pa rty of Oregon. In 1957, he was appointed public utility commissioner (the only one-man com­ mission in the United States having full regulatory powers over all utilities and forms of transp ortation), serving in that capacity until 1959. Mr. Morgan is married to the former Rosina Corbett, of Portland. They have two sons, 8 and 18, and two daughters, 11 and 14 years of age. Senator P astore. Mr. Morgan, I am going to leave the questioning about your attitudes and your philosophy with regard to the develop­ ment of hydroelectric power and so forth to my colleagues here. I am going to confine myself to your point of view on the question of natural gas. Are you a believer in the consumer’s interest? Mr. Morgan. If you mean do I believe tha t it is the function of a regulatory agency to protect the public interest; yes, sir. Senator P astore. D o you conceive that the public interest includes the consumer interest? Mr. Morgan. I believe it mainly focuses on consumer interest. Senator P astore. Are you familiar with the so-called Phillips Pe­ troleum case that was decided by the Supreme Court in 1954 ? Mr. Morgan. In a very general w ay; yes, sir. Senator P astore. In tha t case, whether you agree with the decision of the Court or not, the Court decreed it was the function of the Fed­ eral Power Commission to regulate natural gas from the point of pro­ duction. Are you familiar with that? Mr. Morgan. Yes, sir. Senator P astore. And until that is either changed by a further opinion of the Supreme Court or by legislative fiat, do you think it is the responsibility, duty, and function of the Federal Power Com­ mission to see that law is enforced in every way ? Mr. Morgan. There is no question about it, sir. Senator P astore. Senator Monroney ? Senator M onroney. D o you have any prejudice, however, tha t would lead you to prejudge any case dealing with natural gas ? My State happens to be fortunate enough to be about the second largest producer of gas; it is a major part of our economy. Would you have any prejudice, knowing what the evidence is, would you prejudge any case for or against producers or consumers ? Mr. Morgan. N o, sir. I am entirely familiar with the responsibil­ ities of a regulatory official to protect the general public in its deal­ ings with the large monopolies which provide utility service to the public and, at the same time, to deal fairly with the property interests represented by the utility and its stockholders. I am also aware of the difficulties of making this balance and being fair to all elements of the public. NO MINA TIO N OF HOWARD MORGAN 7 Almost the first obligation of a regulatory official----- Senator Cotton. Pardon me. Would you speak just a little louder ? Mr. M organ. I would say the first responsibility of a regulatory official is not to prejudge a case or to let his formative thinking, such as he may have before the case is heard, interfere with his freedom to follow the facts and the law wherever they lead him. Senator M onroney. Y ou are undoubtedly aware, are you not, that in determining the price tha t the consumer interest is involved with, which is the burner-type price of the gas, there are three principal parts of the gas industry: one, the producer who finds the gas and produces it out of the depths of the ground, delivering it to a pipe­ line, which then transports it in interstate commerce to the edge of a city or edge of a consuming area, and then turns i t over to the local gas distribution company, and tha t all three of these elements are a part of the rate tha t the consumer must bear in this whole picture. Is th at not the fact ? Mr. Morgan. Yes, sir. Senator M onroney. And in considering all of these things, you would not be blinded to each element of the cost that necessarily goes into the production and distribution of this very vital and natu ral resource ? Mr. Morgan. Tha t is correct. Senator M onroney. Y ou would be able to judge all three of them independently and without any predetermination or preconceived decision based on the evidence and on the findings as it is adduced in the hearings ? Mr. M organ. Well, I can’t guarantee that I will judge correctly, sir; but I can guarantee that I will judge free of prejudice. Senator Monroney. And be fair to all ? Mr. Morgan. Yes, sir. Senator Monroney. That is all I have. Senator P astore. Y ou, Mr. Morgan, at any rate, will assume the responsibility to judge? Mr. Morgan. Yes, sir. Senator P astore. In other words, you will not take the position, as some other Commissioners have taken, th at just because they didn’t think it was a wise law tha t they turn their backs upon the enforce­ ment of tha t law ? Mr. Morgan. Sir, I believe it was Mr. Berg wffio read the comment of Senator Morse on this point, and I would like to associate myself with those remarks. I am a former member of a legislative body and I have a very strong feeling that the law should be carried out by administrative officials exactly as it was written and intended to be enforced by those who wrote it. I do not----- Senator P astore. And as interpreted by the courts of this land ? Mr. Morgan. Yes, sir. I do not think tha t an administrative official is entitled to change the law by distorting it or by failing to enforce it. Senator P astore. Senator Schoeppel ? Senator S choeppel. Mr. Morgan, I want to ask you some questions with reference to this gas picture, since we are discussing it at the present time. I hope tha t you will understand tha t the reason for my asking these questions is because you are here for confirmation, 8 NO MINATIO N OF HOW ARD MORGAN and obviously we would like to have your views, or your judgment factors on some of these questions if you are sufficiently familiar with them to give us an answer at this time. I assure you tha t as far as I am personally concerned, there is nothing personal in these questions. What, I want to know is what your views are and what your attitude is toward this law and this industry that you are hoping to become a member of through this great regulatory agency. Now, how much experience, Mr. Morgan, have you actually had in the regulation of natural gas with reference to your commission, when you served as the commissioner in your State of Oregon? Mr. Morgan. Very little, sir. The pipeline which serves the Pacific Northwest from the Permian basin on the south and from British Columbian fields on the north was completed and service established in Oregon in 1956. I assumed the position of utility commissioner—■ and, incidentally, tha t is a one-man commission in Oregon; the only one in the country—in 1957. There were very few rate cases involving natural gas. There were several immediately after I left oflice in 1959. I had some dealings with the pipeline which serves the State and helped persuade its officials to extend tha t pipeline to serve several additional communities in the State. Senator S choeppel. Were those interstate pipelines as well? Did you have a separate intrastate pipeline within your State ? Mr. M organ. Not a separate company. I was able to persuade the company to make intrastate extensions to their own interstate line. Senator S choeppel. I am sure, Mr. Morgan, tha t you know that there are different and serious hazards in the production of oil and gas, and we have what is known as combination wells. Mr. Morgan. Yes, sir ; I am familiar with that. Senator S choeppel. Y ou are familiar tha t the cost factors of com­ bination wells may be entirely different than where you have just strictly a gas field, as such, with sufficient high pressures to put the gas into the line at the least possible expense, assuming that it is suitable and practical gas for consumer use. Mr. M organ. Yes, sir; I am familiar with the difficulties in this field. Senator S choeppel. Are you familiar with the pricing policy of the Commission as set forth in paragraph 61-1, and some of the amend­ ments thereto ? Have you had time to familiarize yourself with that ? Mr. Morgan. I have read them, sir. Senator S choeppel. If so, can you give me your opinion as to the wisdom of this approach as to the pricing factor of gas ? Air. Morgan. I don’t believe I have reached a conclusion on this matter, sir. Senator S choeppel. In other words, you have no definite opinion with reference to that at the present time ? Mr. M organ. N o. I recognize this area-pricing approach is an attempt to solve an extremely difficult problem. I know th at it has not been passed on by the courts as yet, and I have withheld judg­ ment as to the wisdom or lack of wisdom of the policy. NOMINATIO N OF HOW ARD MORGAN 9

Senator Schoeppel. In other words, your view a t the present time would be that this is a policy determination that has been made by the present members of the Federal Power Commission. Are you committed to any view at the time now, at this time directly or in­ directly, to overthrow that view or substitute another view as to policy on this matter? Mr. Morgan. N o, sir; I have reach no such conclusion and I make tha t statement with no reservation whatever. Senator S ciioeppel. I am glad to hear you say that, because that is a very important question, among others, that you are going to have to determine and judge sometime. Do you have any opinions as to the treatm ent of the depletion al­ lowance in computing, say, income taxes of a pipeline which pro­ duces gas? Have you gone into that? Have you given any thought to that? Mr. M organ. Sir, rightly or wrongly, I regard that as in the province of the Congress and the Internal Revenue Service, and I don’t believe it is properly a part of my duties, if and when I become a member of the Federal Power Commission. Senator S ciioeppel. I recognize what you say there, but tha t is a factor to be taken into consideration with reference to issues bearing upon the rates, is it not ? Mr. M organ. It is a part of the financial facts of life affect­ ing a company regulated by the Federal Power Commission, and as such must be taken into consideration in setting the rates; yes, sir. Senator S ciioeppel. I agree with you thoroughly tha t as "far as the righ t to collect income taxes from a corporation or a company or a pipeline or gas produced, tha t is not our function here. But when those taxes are levied, or those taxes are determined and passed on, then you do recognize that becomes a consideration on the part of some commission of which you will be a part, or hope to be a part, in determining what the rate is and how it should be handled in the rate structure, do you not ? Mr. Morgan. Yes, sir. Senator S ciioeppel. I would like to ask you what is your opinion, if you have one, with respect to the use of gas—and I want to say I generally concur with what my distinguished colleague here from Oklahoma says, Kansas is a gas-producing State; we are interested, of course, in the utilization of that in the public interest and in the interest of those who expend their millions of dollars, or hundreds of thousands of dollars, in producing it and making it available to the general public. Now what is your position, generally, with respect to the use of gas as a fuel to generate electricity, or as a fuel in the manufacture of materials such as steel, for example? Mr. M organ. Well, I assume you are referring to some recent ac­ tions of the Commission which, I believe, have been upheld bv the courts, in which the Commission has exercised judgment as to the use of fuels which may be in critical supply, or may in the future be in critical supply, and has taken action to discourage the use of gas for generating electricity as a boiler fuel; is that correct, sir? Senator S ciioeppel. Well, that is a part of it ; but I was wondering generally what your position was with reference to the use of gas over an

Mr. Morgan. This is quite a new subject to me, and I must confess the first time I was aware that the Commision had entered this p ar­ ticular field was during the last few weeks. Here again, I must say, I have reached no conclusion at all and I am not sufficiently familiar with the subject to try to reach a conclusion at this point. Senator S choeppel. In other words, as far as you are presently concerned, what you know, that you are openminded, that you would study this problem ? Mr. Morgan. Yes, sir. Senator S choeppel. Y ou know there is a conflict of interest, so to speak, among the various proponents of the different types of fuel. There are those in the natural gas field who believe that gas can be used up to a certain amount, during certain offpeak times, for indus­ tria l uses, and other various and sundry uses, and whether it is cheaper and cleaner than other fuels, you know th at is in there. All of those factors will probably be before you in certain of these cases, and I take it that you haven’t gone into it sufficiently at this time to make a determination or have a judgment on this: is that correct? Mr. Morgan. That is quite true, Senator. Senator S choeppel. N ow on these cases that might come before you, with reference to—say, for instance—natural gas, on a non- contested case, no contest in it at all, do you feel that you, as a mem­ ber of the Commission, could be free in consulting with the people and producers of gas with reference to the application ? Air. Morgan. Well----- Senator S choeppel. I mean openly, and I mean before your Com­ mission ? Mr. M organ. This question, of course, is extremely controversial, and especially so in the last few months. I must say that consultation between a regulatory agency and the industry it regulates is, to my way of thinking, a necessary part of regulation. It is capable of being abused. But I gather tha t you are not talking about the ex parte communications in contested cases. Senator S choeppel. I certainly am not. Mr. Morgan. Well, I have always felt comfortable about consulta­ tions with the industry. Very few people have ever tried to take ad­ vantage of a conversation with me, and those who did didn’t repeat the attempt. If you cut off consultation with the regulated industry you de­ prive the regulatory official of a great body of information that he can hardly get in any other way—at least in any other feasible and economical way. I think I am capable of handling the question of what is ethical consultation with an industry and putting a stop to it when any sign of unethical approach appears. Senator S choeppel. Mr. Morgan, I don’t want to monopolize too much of the time here, and my colleagues desire to ask some ques­ tions. I will defer my further questioning with the exception of one other question until later here this morning. Mr. Morgan, some of us—I know in my own case, I had the op­ portunity of serving as the chairman of the utility commission of my State of Kansas for a number of years. I had the privilege and the good fortune to confer with and consult with the then members of the Federal Power Commission, and I was privileged to sit in a NO MINA TIO N OF HOW ARD MORGAN 11 cooperative capacity, as the chairman of the utility commission for my State, with reference to the Federal Power Commission examiners on some important cases that involved a number of States through which the applicant pipeline, if approved, would pass. Do you believe in consultation with the State regulatory commis­ sions in relation to your commission ? Let me have- your views on that, will you please, sir ? Mr. Morgan. Yes, sir. I do. 1 assume tha t you mean consulta­ tion off the record about matters which either are in dispute or in litigation, or which may become in dispute and end in litigation? Senator S choeppel. Let me make myself a little clearer; what I have in mind. These State regulatory commissions some places are elected, some places appointed and confirmed by their respective senates or their legislative assemblies as the law in that State provides. They are there in the same capacity within the State as the Federal Power Commission is here in Washington over the entire situation. I am wondering if you feel they are a part of this entire regulatory structure of this country in relation to oil and gas and not so much electric power in my area, but in oil and gas areas? Mr. Morgan. Yes, sir. I feel that they are operating under a public trus t from their own State just as the members and staff of the Fed­ eral Power Commission are operating under a public trust on the Federal level. I always felt free to criticize the attitude of members of the Federal Power Commission or of the Interstate Commerce Commission or any other Federal agency I dealt with when I was public utility commissioner of Oregon. Where I thought those offi­ cials were not doing a sufficiently energetic and aggressive job in pro­ tecting the public interest, I felt free to try to do a better job or to encourage them to do a better job. Also, I saw nothing wrong with consulting with them and writing to them urging a particular point of view on them and I see nothing wrong with this kind of consulta­ tion going in both directions. Senator S ciioeppel. Thank you very much. I will defer to other members. Senator P astore. Senator Bartlett? Senator B artlett. Mr. Morgan, do you have any general views, and if so, would you care to express them as to the conflict between the pressures for high dams on the Columbia River for the generation of electrical energy and the contrary pressures on the part of the fish­ ing industry? Arq^ou fearful construction of more high dams will endanger the supply of salmon on that river? Mr. Morgan. Well, I have, like almost everyone in the Northwest, favored the largest possible multiple-purpose dams on the main stems of the rivers in the Columbia Basin. In fact, I have had the same opinion in regard to all the major river systems in the West with the proviso, however, tha t these dams, where humanly possible, should be built only after adequate means for protecting the move­ ment of fish have been worked out. I hate to see the day approach, and I am afraid that some day we will be faced with it, when we will have to make a clear-cut flat choice between fish and power. That day should be delayed in coming as 12 NOMIN ATION OF HOW ARD MORGAN long as possible, and we should do everything we can to see tha t it never arrives, if we can do it. Senator B artlett. D o you have any hope that the research which is now going on may result in a situation where we could have both? Mr. Morgan. I certainly hope so, sir, and from what little I have heard of the programs now underway in the Interior Department— and I believe Secretary Udall referred to these programs when he asked the Federal Power Commission to delay any final action on the Snake River at this time—what little I have heard about those pro­ grams leads me to hope tha t we may be approaching a solution now. Senator B artlett. In any case, you would not see any need in the early future to make a decision which would result in the destruction of the wonderful fish in that river ? Mr. Morgan. Senator, I hate to see any wrong decision made and I especially hate to see a wrong decision made involving natural resources tha t are worth untold millions of dollars and which will affect the public for generations to come and which is irreversible. Sir, I just do not like that kind of a mistake. Senator B artlett. I am glad to hear you say that, Mr. Morgan. I have no further questions. Senator P astore. Senator Cotton ? Senator C otton. Mr. Morgan, you have assured the chairman, the Senator from Rhode Island, tha t as a member of an enforcement, quasi-judicial agency, you would consider it your duty to enforce the law as it is, and as it has been properly interpreted, regardless of your opinion of tha t law. Would you also consider it your duty as a member of the Federal Power Commission, however, to actively bring the attention of the Congress and of the public to any laws that you believe and have found from experience in your capacity to be either impracticable of enforcement or which may result in inadequate or unjust enforce­ ment ? Mr. Morgan. Yes, sir; I would consider that p art of the duties of a Commissioner. I would add to th at tha t it is the duty of a Com­ missioner, as I see it, to do everything he can to see to it that existing law as interpreted by the courts can be enforced in a practical and feasible and reasonable manner before he asks that the law be changed or repealed. You are as aware as I am, I am sure, Senator, tha t a good admin­ istrator can make a poor law workable in many cases, whereas a bad administrator can sometimes make a good law almost unworkable. I think a Commissioner must approach these matters in good faith and make an honest, earnest effort to carry out the law. Senator C otton. It has been said, however, I believe, that the best way to get a bad law, a fundamentally unsound law off the statute books, is to rigidly enforce it. Do you recognize that as one method of approach, too ? Mr. M organ. I do, sir, but in this field, such an approach is apt to cost somebody a very great deal of money. There are cheaper ways to improve the law than that. Senator C otton. I think tha t is an excellent answer. Thank you. There are certain fundamental purposes underlying the creation and establishment of the Federal Power Commission which I am NO MINATIO N OF HOWARD MORGAN 13 sure , as a stu de nt of funct ion s of t hat Commission, yo u are thoro ughly awa re of. As a Fe deral Powe r Com missioner, would you c onsider it yo ur du ty and par t of the province of your activities to use every means to effectua te and bring about the fun dame nta l purposes which you conceive to un derly the Fe de ral Power Comm ission, in addit ion to the mere act of rend ering decisions and settling disputes? Mr. M organ. Sir, I apologize to you, bu t I am af ra id I lost the thread of th at question somewhere about the middle. Se na tor C otton. I don ’t know as I blame you; it became very in­ volved. To pu t it more blu ntl y, in addit ion to your fun ction, as a Com­ missioner, of decid ing ma tters th at are raised and brou gh t before the Commission, do you also feel as a Com missioner t ha t you have a d uty to actively by other means seek to br ing abo ut the general objectives which underly the purpose of the Fe deral P ow er Commission ? Mr. M organ. Yes, sir; I assume this is wh at is refer red to in the La nd is r ep ort, f or exam ple, as the fu nction of policy pla nning . Yes, sir; I feel very stron gly th at fo rw ard thinking of this kin d is a proper fu nctio n an d responsibility of th e Commission. Se nator C otton. An d in ad ditio n to policy, will you tell me ju st in a few words wh at your c onception is o f the activities referre d to in the La nd is repo rt as policy plannin g? flo w fa r do you go? I)o you go to the matter of atte mpting to in ­ fluence public opinion and congres sional opinion and actively throw­ ing yourself into a movement, tryi ng to make the reg ula tio n of the Power Commission more effective? Mr. M organ. Well. Commissioner Ea stm an once said tha t t he place fo r zealots and p artis an advocates is before , not on, the regu latory com­ missions, and I agree with that. At the same time , the re are some are as in which changes become necessary from time to time, and I th in k th at t he Comm ission should tr y to s tay at least abrea st of thes e c han ges and, if possible, to an tic i­ pa te them in the field o f policy pla nning . I rea d a statement by one of the Senato rs fro m Vi rgini a, I think , the othe r day and he was say ing tha t he hoped in a certain sit ua tio n th at people would not stir up more snakes th an th ey could kill. I th ink this is a good thing to reme mber in a re gu latory commission. 1 don’t think th at the re is any place fo r evangelism in a commission of th is kind. Se na tor C otton. For wh at? Mr. M organ. For evangelism. I don’t think you sho uld be out looking fo r causes, bu t when new situatio ns arise the y have to lie handled and the Commission should be prepared to han dle them prom ptly. Se nator C otton. Ju st —for instance—w ha t is your gen eral philo s­ ophy abo ut public pow er in c ontra dis tin ction to power of p riv ate com­ pan ies, if you are un de r fran chise given by a corporation ? Mr. M organ. Well, I am very symp ath etic to public power. Most of the people in my region are. They re ga rd it as a use ful yard stick, a com petitive sup ple me nt and adjun ct to pr op er reg ula tion which has produ ced tremendous benefits for the peop le of the region.

69326— 61 3 14 NOMINATIO N OF HOW ARD MORGAN

This does not mean that I believe public pow er should become a monopoly any more th an priva te pow er should be. I am not pr e­ disposed in all cases to fav or pub lic pow er over priva te power, and I certainl y am not pred isposed to do violence to the con stitutional and legal righ ts of the p riv ate u tility indu str y a nd thei r stockholders. Senator C otton. I am merely ask ing you these questions with a purpo se which I think is legitimate. It. is not to try to st ar t an arg um ent abo ut public power, but ra th er to get an idea of your conception of the fu nctio ns of the Commission. I tak e it th at you feel th at y our philosop hy is that we should have both pub lic an d p riv ate p ower in this country ? Mr. M organ. Well, let’s put it this way, Senator. We alr eady have both private and pub lic pow er in this cou ntry and 1 am not a pa rti san of eit he r group in an effort to try to pu t the other one cle ar out of business. Senator C otton. Are you one of those who feel, and I have friends who feel with grea t sincerity, th at the na tural resources of thi s cou ntry, the oil and gas th at comes from the gro und, with various oth er na tural resources, should be hand led as tlie heritage of all the peop le and sho uld be handled in behalf of all the people by public ra th er than private exp loitation ? W ha t would be you r comments on that view ? Mr. M organ. N o, I don’t hold th at view. Senator C otton. Would it be your feeling th at a Government agency should encourage wherever possible, whenever certain citie s or sections desire to build a municipal plan t, for instance, p ow erp lan t, to encourage th at endeavor ? Mr. M organ. I believe th at a substan tial body of Fe de ral law alread y does hold fo rth such enc ouragement for those com munities which wish to avail themselves of this form of power. Senator C otton. I don’t want to seek to en tra p you, hut the pu r­ pose behind th at question is th is: 1 happen to live in a section of a cou ntry where there would be grav e difficulties to our ever havin g the benefits of pu blic po wer if we wanted it. Mr. M organ. Yes, sir. Senator C otton. Because we live, com ing from New En glan d, we live in a section where you cannot pro bably develop a TV A. We have no riv ers th at you could dam and produce hydro electric power unless you moved some cities that have been there fo r 300 years an d are pretty well immovable. Mr. M organ. I understand, sir. Senator C otton. Whenever a private corpo ration is servin g a cer ­ tain area and out of tha t area is taken a pro fitable piece, such as a city , building a powe rplan t, a pub lic powe rplant, then imm ediately upo n the rest of the area comes the hea vier burden of high er rates because the juiciest portio n has been tak en over for public power. You realize th at problem ? Mr. M organ. Yes, sir. Senator C otton. H ow fa r would th at rea lization enter into yo ur reasoning as a mem ber of the F ed eral Power ( ommission ? Mr. M organ. I would lx- ve ry reluctan t to see such a thing h appen, NOMINATIO N OF HOW ARD MORGAN 15

Senator Cotton. In other words, if city A, laying aside all the argu­ ments about the relative merits of public and private power—if city A in a certain area desires or has a project and they are consider­ ing th eir own generating plant and if they do it, it means there is no one to serve the perimeter of the rest of that area, and the using con­ sumers, if you please, are going to be subjected to a very, very heavy burden, would you consider it a function of the Federal Power Com­ mission insofar as this matter, if it came before you, to take into con­ sideration and find out if there is some way going to be provided to take care of the other residents of the area ? Mr. Morgan. Well, 1 can only say this, tha t my approach to such a matter would begin with an attempt to find some way to spread the benefits, if there are benefits of a hydroelectric project such as you are talking about, over all of the area. I feel very strongly that public utility responsibility, if you under­ stand the term, it is a term of art, I suppose, the responsibility of a public utility should be as widespread as possible. I don’t like to see communities Balkanized by too small or too over­ lapping or too competitive a utility system. A utility system to be really economical and efficient ought to be large and ought to be wide­ spread under single management and the benefits and the cost should be spread as widely as possible. In is is in the interests of the whole public. The reverse of this process is costly. Someone has to pay the bill. Senator P astore. Would the Senator yield. Senator Cotton. Yes. Senator P astoke. I think the hypothesis set forth by the distin­ guished Senator from New Hampshire is if a municipality decided to build its own power generating plant, whether or not he is a mem­ ber of the Federal Power Commission, would he be opposed to it or having any feeling in the matter. Now my question is jurisdiction. Why would that come under the jurisdiction of the Federal Power Commission at all. It is an intra­ state activity over which the State has sovereign authority. Senator C otton. I was aware of that, Mr. Chairman, when I asked the question, but I also am aware of the fact tha t there can well be cases in which it would be interstate rather than intrastate. Senator P astore. Y ou mean if it went over State lines ? Senator Cotton. Yes, I mean if you take the juiciest part of an area tha t is being served by corporation A, it may serve in several States, but you take the largest city out of it and I don’t want to be put in the position of opposing progress, but you take them out without due consideration for those who live in the outskirts, there is going to be real injustice done. In a general way you can stretch that picture to the whole country, because there are certain sections of this country, fortunate enough to be adjacent to huge great streams with generating power, which can have the benefits of public power and there are others that cannot. Between the haves and the have-nots in tha t respect, I think there is a need of a very, very careful and delicate consideration by the Federal Power Commission. I gran t that many of these instances would not reach you, but I am trying to get your general philosophy and I am sure you understand that is all I am after. 16 NOMINATION OF HOWARD MORGAN

Se nator P astore. I was not b eing critical at all. I merely wanted to correc t the predicate, th at is all. Se na tor C otton. It could or could not, depending on the s itu ation. Now, 1 won’t tak e more time except very briefly. W ha t is your opinion, if you care to express it, abo ut the so-called ut ility formu la, this form ula of gaging the p rofits of utilities by giv ing them a ce rtain percentage on th eir inv estment ? Mr. M organ. Well, my opinion of it—I can only say it is th e or tho­ dox method of att em pting to arriv e at a fa ir return. I am afra id I don’t quite un derstand w ha t you wan t from me, sir. Senator C otton. Well, under certain decisions it has been my un ­ de rst andin g in the pa st t ha t the Federal Powe r Commission has felt they were compelled to use a formu la whereby you took the inv estment th at a ut ili ty had and allow ed them so much percent profit and th at is the way you reg ula ted the prices. Is tha t c orre ct ? Mr. M organ. Yes, sir. Se nator C otton. It h as been m y observ ation th at the F edera l Pow er Comm ission has to a certain extent been moving awa y from th at method, in t he case of gas pa rticularly . My own feeling, not only in the matter of gas, but in oth er fields, has been th at it puts a premium on extravag ance in the sense th at even though the Commission seeks to go into the wisdom o f the invest­ men t, th at still the com pan y th at has been ra th er prodiga l in its investm ent and can show hea vy investment, rea ps un fa ir pro fits by ge tti ng a percentage. I nev er like d th at form ula , bu t the Fe deral Powe r Commission has been m oving away from it in the m atter of gas. Would you as a Com missioner feel they sho uld go back to it? Mr. M organ. We hav e two sep ara te problems here. I agree with you th at this method has in the past and does pu t a premium on ex­ trav ag an t investm ent. In my own State I advocated amendment to the laws which would allow the pub lic u tility commisisoner to examine the pla ns fo r addit ion al con stru ctio n before the investment is made and where necessary dra w a line again st ex tra va ga nt and wasteful spe nding, overbuildin g. Th ere are several devices by which the rate base of the ut ili ty can be inflated. I migh t a dd th at in the past those devices have been used both in inter sta te and in tras tate jur isd iction . Bu t now you are dis­ cussing moving awa y from the rate of return as a measurement or as a means of gagin g prices, in the gas field. The criticism, of course, that has been raised again st the are a price concept in gas is that the are a prices are high. I think Dean La nd is mad e this comm ent in his rep ort. In ci­ denta lly, I don’t know Dean Landis. I have never met him, I have not talked with him , but I have read his report. There are aspects of tlie area prici ng policy th at are distu rbing to me as to oth er people. AJ1 I can do is rep eat wh at I told Senator Schoeppel, I have not enough informa tion or enough fac ts to even att em pt to reach a con­ clusion on this ma tte r yet. I know that it is extrem ely difficult to extend the conventional utili ty concept to the wellhead gas producer. How it is to be done eve ntually , I fra nk ly don’t know. I would like to explore, however, and «ee the Federal Powe r Comm ission explore the pos sibility of classifying those pro ducers who are large enough to influence the NOMINATIO N OF HOW ARD MORGAN 17 marke t and reg ulate them as tho roug hly as directed by the Supre me Co urt and classify those pro ducers who are so sma ll, so tin y, th at even a com binatio n of them could no t have any appre cia ble effect on the m ark et, an d so long as those p rod ucers are actua lly in com pet ition, let com petition regu late the price of gas fro m those wells. I t has alw ays been my concept th at ut ility reg ula tio n is sim ply a substitute for com petition which we use in those fields where the great systems and corpo ration s opera te best and most efficiently as monopolies. In o the r words, it is a monopoly field. We set it up as a monopoly and we use reg ula tion as a substitu te for com petition. Where com­ petition can do the job, where we c an be sure th at it is doing the job, I think it should be allowed to do it. Se nator C otton. Well, I appreciate th at discussion. I do n’t wa nt to press you. I think your position is th at you haven’t made up y our mind, but it may be an o vers implification. It was my und ersta nd ing tha t u nd er a court decision it had been con­ sidered that the Federa l Powe r Commission w ras re ally o bliged to stick to th at conventional method of estab lishin g rates. Mr. M organ. I recognize th at, sir. Se nator C otton. But it had been mo ving away from it, and I thou gh t th at pro bably you would have a ra th er definite idea, even tho ugh admi ttedly you have not had tim e to go into all the ram ific a­ tions o f the duties of the p osition to which you hav e been nominated. I t would be unfa ir of this committee to tr y to force you int o them. As I un derst and it you are not quite prepared to give a categorical answer to that question ye t ? Mr. M organ. N o, sir. All that I am aware of, so f ar as this problem is concerned, is th at it is extremely difficult, very possibly the most difficult problem ever t o con fro nt the Fe deral Po wer Comm ission and it is going to req uire some original th inki ng by a gr ea t ma ny people to get i t solved satisfa cto rily. Se nator C otton. Y ou a re not even p repa red to ind icate the general tre nd o f y ou r thinki ng a t the pres ent m oment on th at very im po rtan t question ? Mr. M organ. Other than to sav, as I have, fra nk ly to you th at I would lik o to see th e p ossibility e xplore d th at there are sufficient com­ petitive forces in at least a pa rt of this field to lessen the ad ministra ­ tive job of the Commission in ha nd lin g it as o rdered by the Supre me Court. Se na tor C otton. Th ank you, Mr. Chairma n. Se na tor P astore. Se na tor Scott. Se na tor S cott. I think Se na tor Mo rton and I would like to de fer to Se na tor Ke fau ver. Se nator M orton. li e does not get any overtim e for being on this committee. Se nator K efauver. I will jus t wait until Mr. Mo rton has finished. Se na tor P astore. You want to w rait un til Mr. Mo rton is finished before you make you r sta tem ent, Se nator K efauver. I ap pre cia te you r courtesy. Se nator P astore. I thou gh t that Mr. Ke fauv er was here f or an oth er nominee. 18 NOMINATIO N OF HOW ARD MORGAN

Senator K efauver. I am, alth ough I know M r. Mo rgan very ple as­ antly . Se nator Scott. I will defer to Se nator M orton fo r th e prese nt time. Senator P astore. Mr. Morgan , are you famili ar with the Fe de ral Po we r Act th at has to do with conflicts of inte res t? I am calling to your atten tio n par t 1 where it says, “Said Comm issioners shall not e n­ gage in any oth er business, vocation or em ployment.” I u nders tan d you are a ranche r. Mr. Morgan. I have a small ca ttle ranch, yes, sir. Senator P astore. Would you classify th at as a business? I am not tryi ng to be facetious, the law’ is exp licit. I call it to your atten­ tio n because I thi nk you must und ersta nd the law and know these facts, assu min g you are a pproved. Mr. Morgan. I am thinking of the balance sheet and tryi ng to de­ cide wheth er I could classify it as a business. Senator P astore. Wo uld you say th at if you continu e to operate th at ranch, y ou would be in contravention of t his section of t he law? Air. Morgan. I thi nk , Senator, th at my place could be classified as a ra th er large home, especially since it is being mana ged by a h ire d ha nd and with alm ost no supervision by me. Senator P astore. Ar e you engaged in any o the r a ctivity th at m igh t be in conflict w ith the Fe deral Po we r Act ? Mr. Morgan. No, sir. Senator P astore. Do you hav e any financial intere st th at would be inim ical or in conflict with assuming y ou r duties as a mem ber of this Comm ission ? Mr. M organ. None wha tever, sir. Se nator P astore. Are you prepared , whatever yo ur in terest s are, to sub mit a list o f them fo r this co mmittee ? Mr. Morgan. Yes, sir. Se nator P astore. Are you fam ili ar w ith t he S ena te resolution th at was passed on July 2, I960, w’hich is S enate Resolution 338 which rea ds as fo llo ws : Th at it is the sense of the Senate that individuals appointed to adm inistrative and policymaking posts should he willing to serve for a period long enough to permit them to contribute effectively in the ir assigned ta sk s; and be it furth er Resolved, Th at it is the sense of the Senate that nominees appearing before its committees shall indicate their willingness to serve so long as the President desires. Are you famili ar with th at? Air. Morgan. I fra nk ly w as not famili ar w ith it, sir. But I am en­ tir ely w illing to make such a statem ent at th is time. Senator P astore. Now inasmuch as th is is possibly a composition of people of va rious political parties, fo r the p urp ose of th e reco rd, wha t is your politic al affiliation? Air. Morgan. I am a Demo crat. Se nator Pastore. Are there any fu rther questions ? Se na tor AIorton. Air. Alorgan, I see in yo ur bio gra phy h ere th at you ha d some service du rin g th e w ar years in the U.S. Navy. Mr. Morgan. Yes, sir. Se na tor AIorton. Di d you enter the Nav y as an officer ? Air. M organ. Did I ente r the Navy as an officer? Yes, sir, I did. NO MINA TIO N OF HOW ARD MORGAN 19

Se na tor M orton. Did yon serve in 1948 or the rea bouts in some consultative cap aci ty un de r the ad minist ratio n of Presiden t Trum an in A laska? Mr. M organ. I served as a mem ber of a fou r-m an team which was sent to Ala ska, to Fa irb an ks, Alask a, dur in g the mo nth of December 1952, by the Defense Tra ns po rt Ad minist ratio n to com­ pile a classified rep ort on the capability of the Alcan High wa y for the military and civilian servic ing of Alask a in the eve nt of a n inva­ sion of A laska du rin g the l at te r period of the K orean war. I served, as I recall, f or abo ut 30 days on th at mission. Se nator M orton. Mr. Mo rgan, you have iden tified yourself po liti­ cally. I hope t hat you will be good enough to give m y warm rega rd to your father-in-law , Mr. Co rbe tt, who has been asso ciated wi th the Rep ublicans. [Laugh ter .] Mr. M organ. Mr. Corbe tt died in 19 57,1 believe. Se nator M orton. I di dn ’t know about it, I am sorry. Mr. M organ. He was a ve ry fine man. Se nator M orton. He was indeed. Mr. M organ. An d warmly reg arded by people of both pa rti es in his home Sta te. Se nator M orton. Ind eed he was. Se nator P astore. Mr. Scott. Se nator S cott. Mr. Mo rgan, I am not sure wheth er this was cov­ ered before I came in, but we are all aw are th at the Pr esiden t has requested repo rts from time to time at certa in inter vals fro m the variou s agencies. Can you advise me wh eth er the Fe de ral Powe r Comm ission is included in those agencies as to which the Presid en t ha s requ ested interi m rep orts? Mr. M organ. I rea d an article in the new spa per which said th at the Fe deral Powe r Comm ission is among those agencies, bu t I do not know a ny thing about th is of my own knowledge. Se nator S cott. The Federal Powe r Commission is, however, one of the so-called ind epe ndent agencies, is it not? Mr. M organ. Yes, sir. Se nator S cott. And in your decisions, opinions, and official con­ duc t, in view of t his request fo r rep orts, wou ld you give some weight to the comments or suggestions com ing to you from the W hite House follow ing rece ipt of these rep orts? Mr. M organ. Well, sir, I would have to say th at I would include all sources outside the Comm ission in this same rem ark , and it would depend on wh at kind of comm ent or instr uctio n or direction was forthc om ing . Th ere is a great deal of comm ent, at the prese nt time, about the backlog of cases in th at Commission and the prop er m eans of taking care of this backlog and ge tti ng it on a cu rre nt basis is of great, concern to the Congress and the executive bra nch . Th ere has even been some str on g lan guage used about it by the judic ial bra nch. I would certainly be inclined to listen to any con­ str uctiv e suggestions th at came from the W hite House with rega rd to changin g pro cedures and methods of ha nd lin g the admi nis tra tiv e work of the Commission, just as I would pay attention to the same typ e of co mmunic ation coming from the Congress. 20 NOMIN ATION OF HOWARD MORGAN

But if you are tal king abo ut a decision on any sub stantive m atter con cerning issues befo re the Commission, I think it is the fun ctio n of th at Commission to rem ain indep end ent in this respect, and I would regard it as so. Senator S cott. There h as been a good deal of discussion and some recommen dations th at ex pa rte app earanc es by Mem bers of Congress befo re Commissions or comm unic ations from Mem bers o f Congress to the Comm ission should be made public. Now if we may assume the va lid ity of th at suggestion fo r a moment, would you feel th at ex p arte suggestion s from the Whit e House to your agency or to you should also lie made public ? Mr. M organ. I believe a specific bill has been prep ared and was discussed in committee heari ngs las t year, I believe before the Senate Ju di ci ary Comm ittee. I rea d the hea rings. I f th at bill were to be enacted in to law , I believe it would ap ply to all persons com municatin g wi th the Commission. Un de r those conditio ns, ex pa rte com municatio ns fro m the Whit e House w ould, I assume, be made pu blic und er th e ter ms of such a law. Se nator S cott. In matters pe rta ining to the exercise of your ju dg ­ ment- in connection with cases befo re the agency, wou ld you perm it any suggestions from th e W hite House con cerning the m atter in which you mi gh t perh aps exercise th at judg me nt? Mr. M organ. Are you r eferring now to a substantive matter , a de ci­ sion o f a specific case ? Senator S cott. Yes, I am referring to wh eth er or no t a specific case should either be decided in a certain way or should be exp edited or delayed or any m atter of substance p ertaining to th at case. Mr. M organ. Le t me say th is, Sena tor. When I was ap pointed u til­ ity commissioner in Ore gon, I had a very exp licit un de rst an ding with the Governor a nd it was the G ove rnor who, much to my pleasure, pu t th is u nd ersta nd ing into e xplicit words. Th e un de rst andin g was th at I would han dle the office of public ut ility commissioner in Oregon and the Governor would han dle the Governo r’s office, and he would not tell me how to decide any case and he did not. I assume that the same un derst andin g will prevai l between the W hit e House and my self in this position. Senator S cott. At the present m oment, you know of no such un de r­ sta nding , do you, between the Pr esiden t and the Commission itself, as a Commission ? Mr. M organ. The Preside nt has been fa r too busy to spend time disc ussing this m atter with me. Senator S cott. Will you suggest to the President th at ther e should be such an u nd ersta nd ing ? Mr. M organ. I think th at would be pre sump tuo us on my pa rt. Senator S cott. S o do I. You suggested th at you did do it to a Governor and I was making th e dis tinction. Mr. M organ. No, sir , I told you th at it was the Governor who him self----- Senator S cott. Th e Gove rnor suggested it to you ? Mr. M organ. Who made thi s un de rst an ding explicit, much to my satisfa ctio n. I sho uld be greatly surpr ised if an ything oth er than such an un de rst an ding were to eve ntuate in my presen t cap aci ty or future capa city . NOMINATIO N OF HOW ARD MORGAN 21 In any case, I have never decided a substantive matter before me for judgment in such a fashion and you have my word that I will not. Senator Scott. I am very glad to have you say that, Mr. Morgan. In your testimony before the Select Committee on Improper Ac­ tivities in the Labor-Management field. I believe you stated that you were among the first persons in Oregon to “assess the intentions of the Teamsters,” and that your testimony implied the former Gover­ nor, Paul Patterson, was obligated to the Teamsters Union because he had been endorsed and supported by them. The Governor who appointed you, Governor Holmes, whom I hap­ pen to know and incidentally for whom I have a very high regard, according to the testimony of one Clyde C. Crosby, received a $2,000 contribution from the Teamsters Union. Now, in view of your testimony tha t you were among the first per­ sons to assess the intentions of the Teamsters in Oregon, how do you differentiate between support given to Governor Patterson and sup­ port given to Governor Holmes ? Mr. Morgan. I am not entirely clear as to the relevance of this mat­ ter but I will be glad to go into it if you wish, sir. The contribution given to Senator Holmes, who was running fo r the governorship at the time, was made openly and on the record. It was made through a joint committee maintained by the AFL-C IO for the collection and distribution of political contributions. There was nothing secretive about it. There were no strings attached to it. It actually came to Senator Holmes through the joint labor committee and not directly from the Teamsters. As to how much money was contributed to Governor Patterson in his campaign, I do not know. The record does not show any. I did not make any comment about the possibility of an improper rela­ tionship between Governor Patterson and some members of the Team­ sters Union in Oregon until after I was informed by representatives of the Teamsters Union that they had established at least some ele­ ments of control over Governor Patterson and those same members of the Teamsters Union had interceded, intervened with me and with the Democratic attorney general of the State of Oregon in an effort to protect Governor Patterson from the political effects of disclosures of improper activities in the liquor commission directly under his jurisdiction and control. Also, I did not make any further comment or any comment about Governor Patterson until these same people in the Teamsters Union made an effort to establish the same kind of control over Senator Holmes, should he be elected Governor. It is true that 1 could not establish in a court of law exactly what the relationship between the Teamsters Union and Governor Pa t­ terson was, but I was experienced enough in politics to be able to establish to my own satisfaction what the Portland Oregonian, the leading Republican newspaper in the State had already established to its satisfaction, that there was a concealed relationship between those Teamsters and Governor Patterson. I testified about this matter before the Senate committee under subpena. It would have been much easier for me to have remained silent about the matter, but I was asked to tell what I knew and I did. 69328— 61 ------4 22 NOMIN ATION OF HOW ARD MORGAN

Senator S cott. N ow the relevancy of the question. You are cer­ tainly entitled to ask why it is relevant. The relevancy of the question turns upon whether or not you complied with the request of a Senate committee because, Governor Patterson being dead at the time your charges were made, one of the members of the so-called McClellan committee made the request that a staff member seek an affidavit from you. I believe this quote is accurate “in which you would ‘either produce evidence derogatory to Mr. Patterson or else make a retrac­ tion so th at the good name of the former Governor can be cleared.’ ” This Senator said, “I think that our committee is a little bit guilty in letting a dead man’s memory be smeared without trying to investi­ gate it furth er.” Thereafter the chairman instructed the staff members to see you and try to get such an affidavit. A very quick search of the files fails to turn up any such evidence and therefore in the question of compliance with Senate committees is where the relevancy occurs. May I ask if you ever did present such a document to the committee yourself ? Mr. Morgan. May I answer the question fully ? Senator Scott. Yes, sir. Mr. M organ. When this statement was made by the member of the committee to whom you refer, I sent a very lengthy telegram to the chairman of the committee informing him tha t my statement was made under oath, that it was truthful, so far as I knew, tha t I did not intend to change any of it, and I received a response from him tha t he was not interested in acting on the request of the individual Senator. I then contacted the staff members of the McClellan committee, who were still in Portland, still investigating, and asked them if they had any request from the committee to secure such an affidavit from me. I was told th at they had none. That was the end of the matter. No request was ever made on me by anybody for such an affidavit. Senator S cott. Page 313 of the testimony would indicate you were a voluntary witness. Am I wrong on that ? You said you were there under subpena, which would indicate you were an involuntary wit­ ness. Didn’t you offer to testify ? Weren’t you a voluntary witness? Mr. Morgan. I was approached on three or four occasions in Oregon by Mr. Robert Kennedy, and his staff investigators, and asked to volunteer testimony about this matter. It was well known in Oregon, and there had been newspaper stories about it, that I had engaged in quite a fight with certain members of the Teamsters Union over their efforts to infiltrate and dominate the Democratic Party in the State of Oregon and that I had fought them off. Mr. Kennedy came to Oregon and asked me if I would volunteer testimony. I said that I would prefer not to. I was serving at that time as public utility commissioner. These fights had all been in the past, and I did not wish to do it. Mr. Kennedy thereupon produced a subpena and said that my pres­ ence was required in Washington, and that I would be asked certain specific questions. I thereupon said that of course under the circum­ stances I would cooperate with the committee, which I did. I was a voluntary witness after the subpena was produced. There didn’t seem to be much point in being otherwise. But the point is NOMINATION OF HOWARD MORGAN 23 th at I was subpen aed to testi fy befo re th e McClellan committee because I had kept my pa rty , as its c hairm an in the S tate o f Oregon , fre e of this kin d of dominance. As I said , it wou ld have been much eas ier for me to have been less fran k wi th the committee in Wash ing ton and no one was s orrie r than I th at some of the testim ony t hat was asked of me was that i nvolving Gover nor Pa tte rson who had died some months previously. But I testified freely as to th e fac ts as I knew them . Se nator P astore. Und er oath ? Mr. M organ. Und er oath. Se nator S cott. Mr. M org an, yo u have j ust said , o f course you were vo lunta ry af te r you were subpenaed. I would like to rea d your own answer into th e record . “C hairm an—Senato r McC lel lan :—” You volu nte ered this no w; he doesn’t ask you. The chair ma n says, “All rig ht, Mr. Kennedy , you can proceed.” Then the next answ er is : Mr. Morgan. I might say I am a voluntary witness who was subpenaed at my own request. The Chairman. Y ou were subpenaed a t your own request? Mr. Morgan. Yes, sir. Now the next question, unless you wa nt to comment on th at, Mr. Mo rgan, is th at on page 1073 of the testim ony ap pe ars Team sters check, Jo in t Council No. 37, in th e sum of $2,000 to the order of R obert Holmes and endorsed by Robert Holm es. Tha t is the l ast question I have. Mr. M organ. I think it is entirely possible th at there was a con­ versation between Mr. Kennedy and myself in which I told h im th at if I were to coope rate with the committee I wo uld do so u nd er subpena. 1 have f org ott en th e deta ils of t ha t. I do n’t recall them at the moment. It is tru e th at I was subpenaed, and it is true th at I was a coop­ era tiv e witn ess with the McClellan comm ittee, testify ing about the att em pts to dominate the political life o f t he S ta te of Orego n throu gh the Teamsters Union. I am sure th at my testim ony offended various people for variou s reasons. It wasn’t the first time, and quite pos­ sibly it won’t be the last time. Se nator S choeppel . Mr. Chairma n, I would like to pursue some of these matters f ur th er , in order t hat we may get them into the reco rd. First , I wa nt to say—to ask you, Mr. Mo rgan, do you recognize or consider th at the Fe deral Power Commission is an ind epe ndent agency of the Government and a creatur e of this Congress? Mr. M organ. Yes, sir; I do. Senator S choeppel . D o you subscribe to the th eor y th at as an inde­ pen dent agen cy it should not be un de r the dom inan ce of any Pr es i­ dent o r any outside interests or any o ther interests, bu t accountable to the Congress of t he U nited State s and to the constituted au thor ity o f this country as we have esta blis hed it with refe rence to these regu la­ tory agencies? Mr. M organ. Well, Senator, the law as you know covers t his m atter very exp licitly. I d on’t th ink it should be dominated by the executive branch to any greater exte nt t ha n is set fo rth in th e law. The President obviously makes the nominations and the reb y does the sele cting of personnel of these offices an d t o some exte nt he con trols 24 NOMINATIO N OF HOWARD MORGAN

admi nis tra tio n withi n the agencies throug h his power to select the chairma n on some of them, includ ing th is one. I am not an advocate of any pa rti cu lar change in the law in this reg ard . I un derstand th at changes in the law are u nder discussion now and there have been hea rings on the possibility of establishing some kind of supervisory or appeal organization , a mi nis try of reg ulato ry agencies, or some typ e of org anization of th at kind. I will be ha pp y to follow the law as it is w ritt en now or as it may be changed by the Congress. Se nator S choeppel . Mr. M organ, as you probably know, ther e hav e been many instances, or certain instances where there has been refe r­ ence made to inquiries on the pa rt of Members of the Congress of members of the indepe ndent agencies or regu latory bodies with re f­ erence to the sta tus of proceedings th at are befo re these reg ulato ry agencies more ap prop ria tely to the one th at you are b efore us for here today. Mr. M organ. Yes, sir. Senator S ciioeppel . Aside from the str ictly quasi, or judicial phases of the t hin g, and aside f rom th e decisions which must lx? m ade by th at Commission af te r it has heard all of the proceedings befo re it, do you have any objection on the pa rt of any Member of the Congress of the U nited State s ma kin g inquiry, if you become a m ember of thi s Comm ission, as to the status of any m atter ? I want to state the reason for thi s question is th is: any numb er of us have received letters or communic ations by c onstitue nts of ours who may have had ma tters before the Commission fo r months and months and months. And T, T am sure like other Members of the Senate and of this committee, hav e received inquiry , “ Can you find out wh at is the sta tus of the proceeding s down there which have been closed and which we have been wa iting on for months and months and m onths fo ra decision?” Do you figure tha t is a n undue influence being exercised on the pa rt of a Senator or Congressman who makes an inq uiry along th at line? Do you have any objection to it, if it does not go to the prospective decision t ha t you are go ing to make in a case? Mr. M organ. N o, s ir ; I don 't. Ru t I would like to add this —and I am sure you are aware of this, being a form er pub lic utility com­ missioner you rself, Se na tor: some agencies, I am told, interpret a mere request for infor ma tio n, or a check on the statu s of a case, from a Senator , as a pro d to hurr y; and I am told th at sometimes thi s ha p­ pens. There are cases where the resche duling or speeding up of a case may alter the substantive rig hts of adversaries in the case. And the S enato r m ay not know this —I mean he may have a request from a constitu ent to ask about the sta tus of the case, and he, know­ ing no thing abo ut the case, asks and the agen cy then responds with greater speed, th inking they are under pressure from the Senator to speed the th in g up. Wh ereupo n, one of the adv ersaries in the case loses his rig hts because the tim etable has been changed and he either doesn't have gas reserves ready to go into operation, or for some oth er reason is put at a disadvanta ge by the rescheduling. I think it is the du ty of the Commission, the Commisison staff and Comm ission members, to know this sort of backgro und to a case and not to alter their admi nis tra tiv e or pro ced ura l methods in such a way as to do violence to someone. This is the only way th at T can think of where a simple request fo r the sta tus of a case by a Se nator NOMINATIO N OF HOW ARD MORGAN 25 might possibly result in injustice to somebody, and it can be prevented by knowledge and proper judgment within the Commission. Senator P asture. Will the Senator permit an observation on tha t point ? That doesn’t prove the impropriety of the interrogator as much as it proves the weakness of the Commissioner. Mr. Morgan. That is correct. Senator P asture. That is just the point we are making here. After all, you have to understand the position of a Senator and Congressman from the actual facts of life. We don’t invite people to write to us about these many matters that they are interested in. As a matter of fact, many times we don’t like it any more than you do when you receive an inquiry from us. But the fact of the matter is tha t people do write to their Congressman and they ask all kinds of questions. First of all, we have to more or less sift them out ourselves and find out what is right and what is wrong. But sometimes a person will write to us and say, “We filed an application 2 years ago. Here it is now, 2 years later, and we haven’t heard a word. What can you do to help us ?” And we just send the letter down there and say, “Within your rules and regulations, we are inquiring what is the status of this case?” Now if someone down there is stupid enough to think that this is prodding and influencing, well, whose fault is that? Is it the fault of the individual -who receives the communication rather than the person who makes the inquiry ? Mr. Morgan. I agree with you ? Senator. Senator P astore. That is precisely what we are talking about. And I have heard all this talk about prodding from the White House. There again I think the White House legitimately can make many, many inquiries. As the administrative branch of "the Government it has to knowr whether or not you have a backlog, whether or not you have enough personnel. I assume the Budget Bureau will get in touch with you from time to time in calculating the estimates that have to be sent to the Congress. I think that sometimes we ourselves on this side of the aisle kind of overdo it a little bit ourselves. I see nothing wrong if the White House pursues this whole realm within the rules and regulations of decency, propriety, fair play, impartiality, and justice. This is America. I don’t think we are going to change it with this appointment. Mr. Morgan. I agree with you, Senator. It seems to me it is part of the Commissioner’s responsibility, when a case is lagging and there is a good reason why it should continue to lag for a while so injustice is not done, to know the facts and to in­ clude them as part of the answer to the Senator or the White House, as the case may be. There was a wonderful old Governor of Oregon, a Governor by the name of Oswald West, who gave me some very good advice when I became public utility commissioner in Oregon. He said, “Howard, there is a lot of pressure in that job. I used to have it myself and I want to give you some advice that, will help: When you are in doubt, just do the right thing.” Senator P astore. And that is the full answer. 26 NO MINATIO N OF HOW ARD MORGAN

Senator Schoeppel. Mr. Morgan, I want to ask you a few questions with reference to some of the press notations that come to my atten­ tion, and this is solely for the benefit of the record, so we might have before us your views and your answer to some of these questions which I am sure many folks will be wondering about. Now, I understand that you have frankly made an answer here, several answers, to the effect that up in your section of the country tha t you are favorable to the Federal power concept. But you have also said, very frankly, that you did not believe that should be to the exclusion of the private power companies who are operating under proper certificates and under proper jurisdiction and under proper regulation, and I assume I am approaching this from this standpoint. That has heretofore been your view; is that right ? Mr. Morgan. Yes, sir. Senator S choeppel. N ow, I just note with some degree of interest tha t on January 27, the Oregon Journal quotes you with respect to your nomination to the Federal Power Commission. You say there—I believe this is in the edition—well, I have given the date of it. This is what appeared in tha t paper with reference to you, Mr. Morgan: lie issued the following statemen t as to his policy in the new post— And I quote: I believe the prim ary objective of this job is essentially like that of the public utility commissioner in Oregon, to see th at the public is not damaged by the gre at corporations which operate most efficiently as monopolies. I think a regulatory commission should insure that the corporations behave as they would be forced to behave if they were in active competition for the public’s patronage. What exactly did you mean by that ? Did you mean to imply that the private corporations or the private utilities in your judgment should be suspect, or just how did you mean that? I would like to have you clear that up, if you would, for my judgment at least. Mr. Morgan. Let me tell you that I was appalled when I was asked by the newspaper reporter to give in one sentence my view of what public utility regulation is and should be. This represents a perhaps ill-advised attempt to cooperate with him and try to provide such an answer. What I meant, sir, was what I said more fully a few minutes ago, that I regard the role of regulation as a substitute for competition. We have free a enterprise system in this country which we expect, by and large, to be regulated by active competition between the enter­ prisers. But in those areas where service to the public can be accom­ plished most cheaply and most efficiently by a monopoly, we have attempted to provide a substitute for competition, and this is the role performed by utility regulation. Of course, you can write a book, several books, about this concept. What T was tryin g to do in response to a specific request was the impossible task of boiling that down to a sentence or two, and I agree with you; it wasn’t a very satisfactory job. Senator S choeppel. I appreciate very much having your answer to this, Mr. Morgan, because that received pretty general circulation over the entire United States. Naturally a man in your position, having served as a utility commissioner of your great State, being designated by the President for this important job, would be con- NOMINATION OF HOWARD MORGAN 27 sidered on what you had to say. I am glad that you have cleared tha t up, at least in my mind, the way you have approached it here today. Now, going to another matter, I understand tha t your biography states that you majored in economics and wrote a graduating thesis on “Public U tility Regulation.” What was the subject of tha t thesis, and what conclusion did you reach in it, just in a general way? Mr. M organ. Well, the subject was the economic conditions and background circumstances which led to the enactment of the Motor Carrier Act of 1935 and amendment to the Interstate Commerce Act. It was an attempt to reduce to writing, which I believe had not been done at tha t time, a comprehensive recital, more or less, of the condi­ tions in the industry which led to the passage of the act. I don’t re­ call any particular conclusion was reached, certainly none that was acted on by the Interstate Commerce Commission. Senator S ciioeppel. You have been described in certain quarters as “a vigorous advocate”—I am quoting now—“of public power.” There is an article tha t appeared in the 'Washington Post of April 3, discussing competing interests for hydroelectric development on the Snake River. The article as I read it includes these statements. It says: The fight has been pu nctu ated with charges from public power proponents that supposedly the neu tral Fed eral Power Commission experts are now biased in favor of the private power plan. And the public power advocates feel, however, th at they will have the balance of power on the FPC for the first time in 10 years once President Kennedy has completed his overhaul of the Commission this summer. Now, I take it with reference to this article, and reference to these views, Mr. Morgan, that your general philosophy and your general conduct will be governed by what you said here this morning before this committee of the Interstate and Foreign Commerce. Commission, tha t you do not carry into this Federal Power Commission, the avowed purpose to advance Federal power over the rights and the preroga­ tives under the law of the private utilities who have certificated rights, under proper regulation by State and by the Federal, with reference to their interstate operation ? Mr. Morgan. That is correct, sir. Senator S ciioeppel. N ow, I want to ask you a few questions with reference—if you will indulge me, I know it is getting to the noon hour. I understand tha t there is now pending before the Commission conflicting applications for the construction of hydroelectric facili­ ties on a stream in your home area of Oregon. I believe it is in your home county. I may not be completely accurate in this, but in your home State of Oregon, or an area up in the Northwest. If my recollection serves me correctly, this is on the Snake River? Mr. Morgan. Yes, sir, that is correct. Senator S ciioeppel. I understand one applicant is a public agency from the State of Washington and the other a private concern. I do not know what the present status of this matter is at the present time or whether it will come lie fore you for consideration, should you be confirmed. But I would like to know, if you believe you could consider these applications of the two parties impartially without favoritism, one as against the other ? 28 NOMIN ATION OF HOW ARD MORGAN

Mr. Morgan. I believe so, sir. Senator S choeppel. N ow, as I said before, the reason I am asking these questions is because I want to have in this record with reference to some of these applications and with some of these matters that have been raised through the press and otherwise, on the Federal Power side over as against the private power side some cleancut posi­ tions and I want to say very frankly to you, that you have given some very satisfactory answers to me on several of them. Now I understand that there is an application up there on the Snake River, that in the judgment of some, would do violence to the salmon industry or the fishing industry and the continuation of that industry which is so very important, not only to our Nation, but in your Pacific Northwest and up in our areas of Alaska. I am somewhat disturbed by what I have heard and what has been in the press about the Secretary of Interior making a statement tha t some of these considerations should be deferred for a period of 3, 4, or 5 years I don't know what the exact date is, before a determination should be made by the Federal Power Commission. Now, how do you feel about that, about deferring it in favor of a request of a governmental agency for that long a period of time? Do you have an opinion to express at this time on that? Mr. M organ. Well, I have not talked to Secretary Udall about this matter or any matter. I have never met the gentleman. But my understanding is that this request is based on the feeling, which I might add is widespread in the Northwest, that both these applica­ tions have the serious possibility inherent in them of extreme dam­ age to the fishing industry. Partisans of each dam claim that the other dam would do more damage, but there seems reason to l>elieve that both partisan groups are right in that both dams can do heavy and irreparable damage to the fishing industry in the Northwest. It is for this reason that the Secretary, so I am told, and so I read in the paper, has asked the Federal Power Commission to suspend the proceedings so that a crash program can be undertaken by his agency to perfect some devices, which I understand have been tried out on a dam in Cal ifornia and have shown promise there. Now I agree with you fully, and as a student of regulatory mat­ ters for over 20 years I know that the Federal Power Commission should be an independent agency, independent of the executive branch, and independent in some respects of the Congress. But I think that the commissioners, who are required by law and their oath of office to protect the public interest in a matter as im­ portant as this, are under some obligation to give the most serious consideration to a request of this nature coming from a public servant charged with the responsibility to protect the wildlife and fishery re­ sources of the Nation. Senator S choeppel. Mr. Morgan, I agree with you from the stand­ point of consideration; yes, sir, consideration should lie given to it. No one wants to do an irreparable damage to that great industry. But I go further and what concerns me is, do we want or should a commission abdicate its power and its authority and its responsibility under the law for that long period of time when another agency says, “You fellows just stop, hold everything, and wait for my crash pro­ gram.” NO MINA TIO N OF HOW ARD MORGAN 29 The Congress may not implem ent his cra sh pro gra m. The point I am tryi ng to make with you, Mr. Mo rgan, is, do you presen tly feel th at you should abd ica te or just give no con sideration to fu rth er going ahead with these appli catio ns and with yo ur stud ies on them and with your final determinations—some of the m may be months and months, and maybe 2 or 3 years alr eady before the Commis­ sion—and wait fo r this addit ion al period of time. That is fra nk ly wh at d isturbs me. Are we ge tting int o a sit uatio n here where one de pa rtm en t of the Gov ernment, sincere as they may be, says, “H old ev erything over here un til we ge t ready to move on a cra sh pr og ram.” I will be very fra nk , th at distu rbs me, and I would like to have your views with reference to it. Mr. M organ. He re again, 1 t hink it would be a mistake for me to have reached a final conclusion on this m atter on the basis of wh at I now know. It is a decision th at the Commission is going to have to make, th at is, they are goin g to have t o decide e ith er to go ah ead with these hearings and grant, a license to somebody, or to suspend the he ar­ ings as th ey have been asked to do in order to receive fu rthe r inform a­ tion on thi s fisheries problem. Now, I have no final jud gment in the ma tter. An d I hope I am ope nminded enough on thi s question, if it should come before me fo r a decision, to l>e able to act on all the facts rele vant to the request th at the Secre tar y has m ade, when all the facts are in. Bu t I do say, th at I, just looking at it from the outside now, I feel that the Commission is un der heavy o bligation to give the most serio us att en tio n to this request and to have extrem ely good reason fo r what it does, no matter wh at it does. Because on the one hand, the rig hts of the ut ili ty concerns and the mate r of montey and man-h ours th at they have pu t into these appli catio ns are v ery considerable, as is also the p oss ibility o f service and pro fit un de r a license i f it is granted. On the oth er han d, an irre pla cea ble resource, the fishing ind ustry of the Northwest, which is im po rtan t to the whole country , is also at stake. Se nator P astore. Mr. Mo rgan, on th at point, I mean I am merely thinking o ut lou d, would there be an ything in consistent with the rules and the juris dic tio n un de r the Fe deral Powe r Act, or the Com mis­ sion to inv ite the Secreta ry of the Int er io r to inte rve ne and show cause fo r the delay which would sub ject him to interro ga tio n on the other side so th at you would g et a c lea rer picture? I mean ra th er th an doing it as an ex pa rte request. If this is weighted down with so m any conflicting inte rests, it w ould ap pe ar to me the y o ug ht to be made par t o f th e record because the public interest is involved. You may do more dam age in goin g one way th an a no the r way, even tho ug h of course it is a different k ind of damage. Th e question here is who g ets th e license t o develop this n atural resource. Now in the creation of one you may be destroying anoth er of a different natur e. I th in k it is quite im po rta nt in wh at decision you make, wh eth er you even decide to delay o r proceed, th at it sho uld be sprea d upon the rec ord and should n ot be completely ex pa rte and tha t the opposing pa rties or those h av ing opposing views shou ld hav e the righ t to r ebut an ything that is said. Tha t would str ike me to be in the Am erican way of doing it. 69326— 61------5 30 NO MINATIO N OF HOW ARD MORGAN

Mr. M organ. We ll, I think th at is an entirely reasonable way to look at it, Se nator. Se nator P astore. I am merely thinking ou t loud. It is entirel y up to you. Se nator S choeffel . I appre cia te the views of our distinguished chairma n, actin g chairm an, of t his committee. An d I have th e utmo st respect fo r every Cabin et official who serves, wh eth er he has alread y served or is prese ntly serving in this admi nis tra tio n. Believe me, I say th at s incerely, bu t to sta te—maybe it was n ot so intende d, bu t it was so reporte d—that th is can be dela yed un til my de partm ent gets rea dy to move here is where I think wha t the dis tinguished Se nator fro m Rhode Island has s aid is n ot ap prop ria te. It is most im po rta nt in o rder to prote ct and be fa ir to all the intere sts a nd to get it o ut in the open where it can be discussed and where it can be heard and where it can be challenged if it is wrong. One final question a nd I know you have been very patie nt here. Did I u nd ersta nd you—and I believe I did, and i f I have misunder­ stoo d you, I wish you wou ld correct me—I believe I heard you say, you do no t believe in ap plying the ut ility concept to the reg ula tion of natur al gas o r the prod uctio n of natur al g as, especially the prod uc­ tio n of n atur al gas a nd th e develo pment o f it ? Mr. M organ. N o, si r; I d id not say th at. I said it is extre mely dif ­ ficult to do so. An d a g reat deal of origi nal t hink ing is goin g to have to be done by a large numb er of people to find some pract ica l, feasible means of carrying o ut t he Supreme C ou rt’s orde r in th is respect. I don’t say it is impossible and I don’t say I disagr ee with it, bu t it is very difficult to do, p artic ularly und er the p rocedu re followed by the Commission a t th e present time, wh ere they handle the rat e a pplication proceeding s of each producer ind ividually. Senator S ciioeppel . I understand th at the Commission down there has probably 90 p erc ent of its activities in the n atur al gas field. I may be wrong, bu t I t hink it is someplace close to tha t. An d it ju st occurs to me, if we are going to apply the ut ility concept to th at , I do not know where this Commission is finally goin g to dig its way o ut w ith out some rea listic approach to this problem, either legislative ly or other­ wise. Tha t w as th e reason I asked you th e questio n. I wondered w hethe r you subscribed completely and fully to the ut ility the ory as app lied to the pro duction of na tura l gas, because we hav e so many different types o f gas wells, different gas fields, different entities involved, some corpo rate inte rests, some pr ivate interests, some ind epe ndent opera ­ tors, w ith one o r two o r th ree wells or so mething like tha t. Mr. M organ. Sir, you know from yo ur own experience, th at it is a relatively simple m atter to tak e a slide rule and apply it to the rate base and the cost o f service o f a ut ility com pany and arriv e at a price fo r the final pro duct. Train ed men can do this almost witho ut th in k­ ing abo ut it and in a very brief time, but, to apply this to minerals and products of the ea rth th at come with varie d degrees of prod uc­ tion costs and rates of flow, is an extrem ely burdensom e th in g to tr y to do, especially wi th this tremendo us numb er of tho usa nds of pr o­ ducers. The Comm ission is ord ered to do this b y the Sup rem e Court, and it is now incu mbe nt on the Commission to find some feasible, practical way to do it. NO MINA TIO N OF HOW ARD MORGAN 31 I must say, all my thinking on this matter is still in the formative stage. I am standing on the outside and looking at it from the posi­ tion of an outsider. I have enough experience to know that all these organizations look very different on the inside from the way they look on the outside. But it seems to me that the Commission has got to change its pro­ cedural methods of carrying out this mandate of the Supreme Court if it hopes to accomplish the job. Senator P astore. May I make an observation on that, Mr. Morgan? I was the one who chaired the hearings on the Natural Gas Act that was vetoed by President Eisenhower. And while I was one of those who believed th at the Supreme Court was right, that the natural gas should be controlled, should be under the supervision of the Federal Power Commission in the public interest, and that the only way to do it was to reach right down to the source, otherwise you would have had half control and half not control and tha t would have been an anomaly too and would not be satisfactory. I was one of those who was convinced of course tha t the formula, tha t is the orthodox formula of utility rates, as we understand them in electricity, would not work in any practical fashion. Well now, those who disagreed with me wanted to throw out the Phillips ruling completely and they had hoped at the time tha t the President would sign the act, which of course he did not do. Since then, nothing has been heard. It has always been my secret hope tha t this would be renewed, not in order to free natural gas from supervision because I think it should remain there, but we should look at it in a realistic and practical way. Now I question very much that the Federal Power Commission has the latitude tha t it might want in changing these formulas, even in a realistic, practical way, and if that is so, then I would hope th at the Federal Power Commission would work on a formula that would be practical and would be realistic and send it here to the Congress for the consideration of the Congress, and maybe something could be done about it. As it stands now, it is absolutely unsatisfactory either way. First of all, because of the cumbersome procedure under which you have to go, you have no enforcement many, many times, and an injustice can be done either in one direction or another, and I think the paramount interest here is the public interest and if the present formula does not work, I think that we ought to put our heads together. I merely want to leave this message with those who are listening to me at this time, that it is not only the fault of the Federal Power Commission when it comes down to it, but Congress has to assume some of the blame too. Because when this was argued on the floor of the Senate I was the one who suggested tha t in any formula, even under the legislation pending at that time, we should have an element of protection of the consumer interest. And if you can get tha t in there, I think that would give the latitude to the Federal Power Commission to move in the proper direction. I merely leave that with you and so you may consider it. Any further questions ? Thank you very much, Mr. Morgan. (Whereupon the committee adjourned until Tuesday, May 2,1961.)

NOM INATION OF HOWARD MORGAN, OF OREGON, TO BE A MEMBER OF THE FED ERAL POWER COMMISSION

TU ESD AY, M AY 2, 1961

U. S. S enate, Committee on C ommerce, Washington. D.C. The Chairman. The committee will come to order. Mr. Swidler, several other members of the committee will be here in just a minute or two, but in the meantime we have the nomination of Howard Morgan, of Oregon. We will proceed with that first. NOM INATION OF HOWARD MORGAN, OF OREGON, TO BE A MEMBER OF T HE FED ERAL POWE R COMMISSION FOR TH E REMA IND ER OF TH E TERM EX PI RIN G JUNE 22, 1963—Resume d The Chairman. Mr. Morgan, if you will come forward. Mr. Morgan’s nomination is to be a member of the Federal Power Commission for the remainder of the term expiring June 22,1963, the vacancy tha t resulted from the death of Commissioner Hussey, of Louisiana. This nomination was sent to the Senate approximately 3 weeks ago or just p rior to the Easter recess of the Senate and then the following week the chairman set hearings on Mr. Morgan.. I was home at that time and didn't come back tha t week, so I suggested to expedite the matter that the committee go ahead, so I was not present at the original hearing when Mr. Swidler and Mr. Morgan were before the committee. The Senator from Rhode Island handled the hearing and most of the Senators were here. The nomination, for the purpose of the record, was submitted to the Senate on March 21, referred to our committee on the same day, and on March 22, the following day, the committee met in executive session, agreed to hold public hearings on the nomi­ nation on April 11, which was about as soon as we could get at it be­ cause there was a 10-day or almost 2 weeks Easter recess intervening at that time. Then on April 11 the committee held a public hearing on the nomi­ nation and then at the next regular meeting of the committee in execu­ tive session action was deferred pending receipt of additional infor­ mation requested by members of the committee. That was on April 18. As a matter of fact, the committee on that day intended to go into his additional information but we were in the middle of voting on the minimum wage law and as you recall the bells rang and we all had to go to the floor. So the next time we could get this matter up would be the next regular meeting which is this morning. 33 34 NOMINATION OF HOWARD MORGAN

Mr. Mo rgan has perso nally discussed some of the ma tters, the ad ­ dition al informa tio n, at my request and at other Senator s’ request with members of the comm ittee. He has sub mitted some addition al inf orma tio n and the departm ents have s ubmitted addit ion al inform a­ tion , which most of the mem bers of the comm ittee are quite famili ar with. I don’t know of any f ur th er in form ation that is necessary, and so, in order to expe dite the matter a gain we decided this mo rning th at we wou ld have Mr. Mo rgan come before us fo r such questions as the com mittee mem bers would like to ask on th is addition al inform ation. As I say, the chairma n is not too fam ili ar with all of it because he was no t h ere at the orig ina l h earin g of A pr il 11, Senator Pa store, who will be here in a m inute, conducted those h earings. I am hopeful that the m atter can be dispo sed o f q uick ly and that is why I am bringing Mr. Morg an’s nam e up now because he was br ou gh t up first ah ead of Air. Swidler. Now, if the members o f the comm ittee h ere prese nt have any q ues­ tio ns we w ill be glad to hear from them . Se nator S choeppel . I would like to ask a few questions first and then defer to my colleag ue here, S enato r Sc ott. Air. Alorgan, the first matter th at we are concerned abo ut grew out of a fight in a con struction camp. I un derst an d th at was up in the State of Oregon. W ill you tell us about t hat incide nt, please. Air. Morgan. Yes, s ir ; I will be gl ad to. The C hairman . I d on ’t wa nt to in te rrupt b ut I m ight say now th at Air. Alorgan sub mitted a l etter to the chairm an of the committee, which I read to the com mittee members th is m orn ing , in which he suggested th at he would be glad to discuss thes e additio na l matters either in executive session or in a public heari ng, or both. AVe w ill pu t th at note in the record in full. April 21, 1961. Senator W arren W. Magnuson, Chairman, Senate Commerce Committee, Senate Office Building, Washington, D.C. Dear S enator: The President has suggested th at I request the privilege of appearing before the next executive meeting of your Senate committee so th at I may discuss the charges which have been made aga inst me within the committee. I sincerely hope this will be possible and that you will be able to atte nd the meeting, so th at all aspects of the ma tter may be discussed in detail. Very sincerely, Howard Morgan, Nominee, Federal Power Commission.

Washington , D.C., April 26,1961. Senator W arren G. M agnuson, Chairman, Senate Commerce Committee, Senate Office Building, Washington, D.C. Dear S enator: I am informed tha t, in response to my let ter of April 21, you wish me to request the opportunity to be hea rd before a public, rather tha n an executive, session of the committee. My original request was to be heard at the earliest meeting possible and since I had been informed th at this was to be an executive session, th at is what I requested. I am perfectly willing to accommodate myself to your de­ sires (and those of the committee) in this regard, and I shall leave to you the choice of meeting at which I may be heard. Very sincerely, Howard Morgan, Nominee, Federal Power Commission. NO MINATIO N OF HOW ARD MORGAN 35 Excuse me, Senator Schoeppel. Senator S ohoeppel. Will you tell us about that incident, please. Mr. Morgan. Yes, sir. I spent several years working in construction camps in the North­ west during the early and middle thirties, working my way through college. In 1936, when I was 22 years old, during the summer in one such construction camp in central Oregon, there was a fist fight between two contractors, one of whom was my employer. The fight started when the other contractor grabbed a screwdriver and attempted to stab my employer three or four times—the screwdriver wasn’t par­ ticularly sharp and there was no great damage done, but quite a bitter fight ensued and it want on for quite a while. After several minutes a truckdriver who worked for the other con­ tractor jumped on my employer’s back and began choking him with one arm and striking him with the other. I was nearby and stepped forward, pulled the man off, and threw him to the ground. He got up with a rock in his hand, and tried two or three times to hit me with it. He failed to do that, threw it at me, struck one of the people in the crowd behind me and there was a further scuffle. But the up­ shot was tha t he was removed from the fight and did not reenter the fight. The main fight continued for a while more. Three or four days later the contractor who had begun the fight with the screwdriver----- The Chairman. Will you talk just a little louder so everybody can hear in the back ? Mr. Morgan. Yes, sir. (Continuing)—brought a complaint of assault and battery against my employer and his truck driver brought a complaint of assault and battery against me. I was summoned to appear before a justice of the peace at the local county seat and described the fight and my p art in it very much as I have here. There were four or five witnesses who verified my statements. The justice of the peace thought about i t a while and finally asked me if my employer had asked me to remove the attacker from his back. My answer was to the effect that he was too busy defending himself from two men at the same time to hold a conference with me about it; whereupon, the justice of the peace announced tha t that’s where I had made my mistake and it would cost me $25, to which he added $17.50 in court costs and witness fees. Tha t was quite a lot of money in 1936 to a college student, but I cheerfully paid the fine, chalked it up to experience, more or less laughed it off and forgot it. Senator S choeppel. N ow, Mr. Morgan, at that time you understood, of course, that you were arrested ? Mr. Morgan. I was handed a summons, sir; I ’m not sure whether technically tha t means I was arrested or not, I’m not a criminal lawyer. Senator S choeppel. Well, if the records in Oregon showed th at it was listed as a report of an arrest that would be the determining factor with you, would it not, as to what the record actually disclosed? 36 NOMIN ATION OF HOWARD MORGAN

Mr. M organ. N o, the determ ining factor with me, sir, was wh at hap pen ed, and what happene d was th at a summons was delivered to me at the constru ctio n camp req uirin g me to be in the county seat 2 day lat er—which I did. Senator S choeppel. Have you ever checked the record up the re ? Mr. M organ. N o-, sir. Senator S choeppel. Well, if you check the record up there, mic ro­ film reco rd which is kep t, you will find th at it ’s listed under No. 5368 0, I believe, repo rt of arrest of Ho ward Vincent Morgan, and th at is y our name, isn’t it?

Mr. M organ. Yes, sir. Senator S choeppel. An d the Sergeant ma kin g th e arr est, who made the r ep ort o f the arr est, is F . N. Grim, I believe i t is, Fr an k N. Grim. Did you know him ? Mr. M organ. I remember him ; yes, sir. Senator S choeppel . Was he an officer at th at tim e? Mr. M organ. I believe he was a St ate police sergeant in th at area, sir. Senator S choeppel . An d he was the officer who would make a rre sts as far as you are acqu ainted with? Mr. M organ. Tha t is correct. Senator S choeppel . Was the case actually tri ed in court the re? Mr. M organ. It was in justice court. It was in a small office, it was a very inform al sort of chamber. Senator S choeppel . We re witnesses sworn at th at time, do you remember ? Mr. M organ. I ’m inclined to think so, si r; bu t I can’t rea lly remember. Se nator S choeppel . I was just wondering if you remembered it. An d as I gathe red you said th at on the part of the justice of the peace o r the tryin g official at th at time, or whatever h is name might NO MINA TIO N OF HOW ARD MORGAN 37 have been, whether it was a justice of the peace or a police court, he lined you $25 and $17.50 court costs, I believe you testified to. Mr. Morgan. That’s correct. Senator Schoeppel. For which you paid? Mr. Morgan. 1 had forgotten the exact amount, sir, until these documents were procured from Oregon, but I remember them now. Senator Schoeppel. Had you ever been arrested before that? Mr. Morgan. I don’t believe so, sir. Senator Schoeppel. Who was Harold H. Keppinger? Mr. Morgan. Well, I think I know the answer to that, but I have only learned it within the last few days. From my own recollection I cannot remember the name of the other contractor in the fight, I cannot remember the name of his truckdriver, and I cannot remember the name of the justice of the peace; all these things have faded out after 25 years, sir, but I believe from the documents that I have seen in the committee’s possession that Mr. Keppinger was the man whom I removed from my employer’s back. Senator Schoeppel. And I think you testified, if I remember your testimony correctly, I want to be correct about it in this record, you said that you had several witnesses to the affray. Can you recall the names of some of those witnesses for the benefit of the record here? Mr. Morgan. I can recall a few last names. There was a man named Hansen, there was a man named Schlegelmilch, which is a rather hard name to forget. Beyond those two I don’t seem to recall any. Senator Schoeppel. Mr. Morgan, do you recall whether you tried at the time to file a complaint against the other person or persons who were involved in this altercation ? Mr. Morgan. Tha t I don’t recall; no, sir. Senator Schoeppel. Who was your employer during the summer of 1936, do you recall ? Mr. Morgan. A man named Jack R. Eatch. Senator Schoeppel. How do you spell that last name ? Mr. Morgan. E-a-t-c-h. Senator Schoeppel. Now, Mr. Morgan, do I understand you to say tha t you completely forgot about the fact that this took place and that you were arrested or that you were brought before a magistrate and that you paid a fine ? Mr. Morgan. Well, sir, let me put it this way. I have gone for I would say 3 or 4 years at a time without remembering this incident or having any reason to remember it, and then upon meeting someone who was there, who worked in the camp or who knew about it and who referred to it and laughed or joked about it, I would recall it tempo­ rarily and then forget it again for long periods. I have an excellent memory, an unusual memory for things that. I regard as important and significant, but there’s an obverse side to that memory and I have the gift, and it is a gift, of allowing myself to forget things that I regarded as trivial, meaningless, and silly; and it is in tha t category tha t I most often remembered this incident. I regarded it as a $42.50 practical joke on myself and for the most part I never thought about it. Senator Schoeppel. You never thought about it even though you looked possibly at four specific records that had detailed questions asking you about an arrest ? Would you want this committee to be­ lieve that? 69326— 61------6 38 NOMINATIO N OF HOW ARD MORGAN

Mr. Morgan. Y ou are talking now about the form 57’s which I filled out upon occasion for employment with the U.S. Government, are you, sir? Senator SciioErrEL. I will defer to my colleague, Senator Scott, here. Senator P astore. Mr. Chairman, don’t you think he ought to an­ swer that question ? I think it’s left up in the air. I think the last question was left unanswered. Senator Schoeppel. I will withdraw this last question, Mr. Morgan, and I will have a few more questions later. Senator Scott. Mr. Morgan----- Mr. Morgan. Yes, sir. Senator Scott. Fir st of all, you have very recently said something to me with regard to earlier testimony having to do with certain Oregon personalities and I would like the record to show that I accept the statements you made to me as satisfactory and I will not again refer to that particular matter. Mr. Morgan. Thank you very much, sir. Senator S cott. I think unfortunately, unfortunately for the com­ mittee and I think you yourself will grant it, but these matters some­ times get tried in the newspapers before they reach a hearing. Mr. Morgan. Yes, sir. Senator S cott. And through the courtesy of some of the press re­ ports and at least one columnist I am put into a position which I be­ lieve ought to be cleared up promptly, tha t I have some reason, perhaps because of difference in point of view, which I have never explored so I don’t know whether it exists, but a presumed difference in point of view between you and myself on matters which will come up tha t I may for tha t reason appear to be persecuting you, I hope t hat you yourself don’t think that. I assure you it is not correct. I am also the beneficiary of certain totally false and unwarranted reports that any question 1 might ask you might perhaps be due to the fact that some large and wealthy family in Pennsylvania are my biggest contributors and therefore I would like the record to show that the family mentioned in the column did not contribute to my Hugh Scott for Senate campaign committee a single red cent. I will withdraw the “red” since I am sure the family in question would not want to have anything to do with anything which is red, but I would like the record to show that they were not either the biggest con­ tribu tor or in fact a contributor at all. Having clarified that record----- Mr. Morgan. Mr. Scott, may I add a little clarification of my own ? Senator Scott. Yes, sir. Mr. M organ. The columnist to whom you referred tried to get in touch with me some 2 weeks ago before he went on a trip to Latin America and immediately again upon his return some 10 days later. He was the fourth newspaperman to tell me tha t he had received in ­ formation from members of the committee, though neither he nor the others identified any particular member of the committee. He in­ formed me th at he was going to write an article about it and he asked to see whatever papers I had tha t might bear on the subject, and I decided since an article was going to be written I would like to be as accurate as could be without, as you say, tryin g the case in the news­ papers, and so I allowed him to see them. NO MINATIO N OF HOW ARD MORGAN 39 I was able to persuade the other three newspapermen who had seen me earlier that 1 did not want them to do anything like this in the papers and they acceded to my wishes. Senator S cott. I passed his farm yesterday and I noticed a sign out there advertising a product, the product was manure and under it it said, “All cow, no bull.’’ I don’t want to get into commercials here, but my inquiry is actually to determine the circumstances of these arrests and why they were not included in certain forms. This is what I directed my attention to, and with regard to the charge of larceny of a tire and gasoline which was referred to on which you were arrested, could you first tell me if my information is correct tha t tha t was on a fugitive w arrant to Maupin County? Mr. M organ. I don’t know where the warrant originated or whether there was one and to the best of my recollection I was never faced with or put under a specific charge. I may be mistaken in this, but tha t is my recollection of the matter. There is a description of this incident in the affidavit which I furnished to members of the committee and it is an accurate description of the incident. I would like to request th at that affidavit be made a part of the record at this point so that we can have a starting point from which to discuss the matter. Senator S cott. Yes, I request, Mr. Chairman, that Mr. Morgan’s affidavit be made a part of the record. The C hairman. I have a copy and I will be glad to put it in the record in full. (The document is as follows:)

Affidavit

State of O regon, County of Multnomah, ss: I, Jack It. Eatch, being first duly sworn, on oath depose and say t h a t: I live at 5246 North east Hoyt Street, Portland, Oreg., and am now engaged in the general contracting business; that I was in the contracting business in 1936 and was engaged in a highway surfacin g contrac t in eastern Wasco County dur­ ing that year. At llie conclusion of the job all equipment was gath ered and retu rned to Portland. Included among the materials retu rned to Portlan d was a passenger car tire which had appeared in the construction camp some time during the job and was transported unnoticed with the other materials to Port­ land. IIo w this tire got into the construction camp has never been determined. Mr. Howard Morgan had worked for me in the p ast and during the succeeding win ter I owed him some back wages. He was atten ding night school in P ortland and was anxious to collect wages in order to supply his automobile with tires. In looking through my supply of tires for something which he might use, I came across the unidentified automobile tire which did not fit any of my vehicles or his, and I suggested that he might take it in lieu of p art payment of wages and exchange i t at a service station for a new tir e to fit his car. He agreed to do so. As I und erstand the subsequent events, when the service station proprietor made a routine report of tire s which he had taken in on such tran sactions, it was discovered that the tir e which had come from my garage had been reported as stolen. Accordingly, the police took Mr. Morgan into custody, put him through the usual identification procedures and took him to The Dalles for furth er in­ vestigation of the ma tter. Upon learning what had happened, I immediately went to The Dalles, ex­ plained that I had given the tire to Mr. Morgan, and arra nged for reim burse­ ment to the service station proprietor. Of course, the police immediately re­ leased Mr. Morgan. No formal charge was ever brought against him nor was there any court procedure of any kind concerning this matter. 40 NOMINATION OF HOWARD MORGAN

At any time during this affair Mr. Morgan could have placed the major blame for this situatio n upon me but he chose not to do so. In the circumstances his behavior was not only entirely honorable but extremely generous. From the time when Mr. Morgan first clashed with the undesirable elements in both political par ties du ring his term in the legislature, I have been repeatedly interviewed by Mr. Morgan’s political enemies seeking a statement from me which would be damaging to Mr. Morgan concerning this unfortuna te incident. I have consistently refused to say anything but the truth, which is the above. J ack R. Batch . Subscribed and sworn to before me this IGth day of October 1953. [ seal] E ileen A llen, Notary Public for Oregon. My commission expires April 19,1957. The Chairman. Senator Scott, if all of you will excuse me. I have a meeting I have to go down to, I ’ll be back in a few minutes. I will be back in about 10 minutes. Senator Pastore is here and he will take over. Senator S cott. Mr. Morgan, I have a photostat of a police record which I show you, “Criminal records: Stole tires, etc., from a service station in Maupin, Oreg.” Under the heading, “Where arrested,” it says, “City,” and “Crime charged, Fugitive, Maupin, Oreg.” Have you seen this photostat ? I imagine you have seen that. Mr. Morgan. I have seen that many times. Senator S cott. And can you then explain how it was that you were arrested on a fugitive warrant? Mr. Morgan. I am not aware there was a warrant, sir. I think the description of the incident is contained in the affidavit and shows the steps by which this little comedy of errors took place. My recollection is th at when a tire, which I had received through legitimate channels from my employer, who also received it through legitimate channels, was traded in on a recapped tire the serial num­ ber was reported to the police and it showed the tire to have been stolen, and I was immediately arrested by the police. Senator S cott. Mr. Chairman, I ask that this photostat be in­ cluded in the record. Senator P astore (presiding). Is there any objection? Senator S cott. Unless the witness has an objection to it. It has been discussed in the public press. Mr. Morgan. Well, Senator-----■ Senator P astore. Why can’t we incorporate it by reference and it can be kept in our files rather than be spread in the record ? Senator S cott. I agree it may be incorporated by reference and keep it in the committee files. (See appendix for the following documents—other than the photo­ stat ordered incorporated bv reference—that relate to the foregoing discussion: Telegram from R. W. Brower, chief of police, The Dalles, Oreg., dated April 25, 1961, advising of the records of The Dalles Police Department relating to Howard Vincent Morgan. Four pages consisting of records and certifications from the Port­ land Police Department and Portland Municipal Court dealing with Howard Vincent Morgan.) Senator S cott. Mr. Morgan, in this connection you say that an affidavit was made by Mr. Eatch to clear this up ? Mr. Morgan. That’s right. NOMINATION OF HOWARD MORGAN 41

Senator Scott. And Mr. Eatch says he is engaged in the general contracting business and his affidavit was taken October 16, 1953. You said a moment ago tha t the tire had come legitimately into his possession. He says, “Included among the materials returned to Portland was a passenger car tire which had appeared in the con­ struction camp some time during the job and was transported un­ noticed with the other materials to Portland. How this tire got into the construction camp has never been determined.” In other words, he doesn’t know its origin as he says here. Xow have you seen Mr. Eatch very often between the time of your employment by him and the time when he made the affidavit in 1953? Did you see him frequently or not? Mr. M organ. Mr. Eatch and I were in partnership for approxi­ mately a year in 1946-47. Except for tha t period I saw Mr. Eatch hardly at all between 1936 and 1946, and again from 1947 I saw him practically not at all until the time I asked him if he would pre­ pare an affidavit setting forth the facts in this case. Senator S cott. Then he had been a partner with you prior to his taking this affidavit ? Tha t is correct chronologically. Mr. Morgan. That is correct; yes, sir. Senator S cott. And are you aware that the current city directory for Portland, Oreg., carries the following listing: Pioneer Construction Co., 7881 Northwest, Saint Helens Roa d; President. Jac k R. Ea tch; Vice President, Mrs. Lena Eatch ; Secretary Tre asurer, Howard V. Morgan. Mr. Morgan. Yes, sir. Senator S cott. And are you presently in business in the Pioneer Construction Co., with Mr. Eatch ? Mr. M organ. I am in a sense, but my officership in tha t concern is being terminated because of my present pending appointment to the Federal Power Commission. I might add tha t I went into that relationship with tha t company on March 1 of 1960. Senator Scott. When you were arrested in The Dalles on this lar ­ ceny charge, rather you were arrested in Portland you were taken to The Dalles and there you were held by the justice of the peace. Mr. Morgan. That’s right. Senator S cott. Whose disposition is marked as “Released to State police.” Then what was the disposition of the case ? Air. Morgan. I was just going to remark, Senator, that I am not aware, in fact, I am very certain of this, that I was never charged with larceny. I was arrested in Portland as, I presume, a means of ena­ bling the police to investigate the circumstances surrounding my pos­ session of that tire. The investigation had to take place at The Dalles. As soon as I was transported there and the investigation began it be­ came quite apparent tha t my connection with the tire was entirely legitimate and I probably should not have been arrested in the first, place and I was released at once. That was the end of the matter. There was no court action, no arraignment, no indictment, no warrant issued in The Dalles. The police investigation terminated the affair in the first round. 42 NOMINATIO N OF HOW ARD MORGAN

Senator S cott. When you went fro m Po rtland to The Dalles, didn ’t you go there un de r a w ar rant of arrest ? Mr. M organ. I did not have a law yer, sir, and I was very young and not as appre cia tiv e of th e importance of these details as I sho uld have been and I don ’t know wh eth er there was a war rant fo r my ar­ re st or not. Th e only th in g I hav e seen are the docume nts which you have seen and they describe the cha rge against me at th at po int as th at of a fugit ive w hich I understand is s imply a blanket term which would cover an arrest of this kin d fo r an inv estigation . Senator S cott. The same docu ment, tho ugh, under the heari ng, “Crim ina l record,” rea ds as I rea d it, “Stole tires, oil, an d so fo rth fro m a service sta tio n in Maupin, Oreg .” Ar e you say ing now to the com mittee th at you wouldn’t know t hat you were being so accused when you went from Po rtla nd to Th e Dalles ? Mr. M organ. I hav e described to you wh at I un derstood th e circum ­ stances to be. Senator S cott. Can you exp lain, th en, how a p ho tograp h came to be tak en of you at that tim e ? Mr. M organ. Tha t is som ething t hat I have ofte n wondered about. It h as always been my opinion t hat I shou ld not have been identified in th at fash ion. I am sorry to say this h appens to tho usa nds of peo­ ple every year and as in my case it becomes a source of severe annoy­ ance and trouble to them in lat er years. If I had had an att orney I don’t believe I would have been photo gra phed. Senator S cott. Well, the committee has been advised th at the reco rds of th e Oregon S tate police on this m atter have been rout inely d estroyed with the exception of inf orma tion contained on an index card. Now the index card reads as follows, and I will show you thi s lette r from the St ate of Oregon if you like. It is from the departm ent of the St ate police, Salem, A pril 26 ,196 1, and they say : D ear S ir— addressed to a mem ber of the committee staff— In response to your telegram of even date please be informed our arrest reports Nos. 53626 and 53627 do not relate to Howard Vincent Morgan. Those portions of the photographic copy of the microfilm pertain ing to these cases should have been removed from the reproduced section before it was mailed to Washington. Except for the limited information contained on an index card remaining in the crime file, the other incidents mentioned in your message are no longer of record at this headquarters. The covering reports were routinely destroyed during a clearing of obsolete records. They were not reduced to microfilm. A copy of the index card is enclosed. Yours truly, H. G. M aison, Superintendent. The n the index car d, “2-8 -37, No. 21426, Larceny from service sta­ tio n.” Th en an “O K” in the corne r which might mean anything , of course, “Wasco County,” the n in capitals , “C OW CA NY ON SERV­ IC E S T A T IO N th e n below it, “On High wa y 97, between Maupin and M adras, Oregon.” Sig ned “ C. A. Glenn ,” and the body of it s ay s: Reports the theft of one new tire, and several cans of lubricating oil, on about July 30th. One Howard Vincent Morgan age 22 years, who was arre sted by Portland police on February 7th, adm itted the above theft, also stated he sold the tire to Norene’s Service Station in Portlan d but did not know what became of the oil. NO MINATIO N OF HOW ARD MORGAN 43 Now would you care to comment on that ? And I will ask that this be included in the record, this statement, since I have read the entire statement. State of Oregon, Department of State P olice, Salem, April 26, 1961. Mr. J ohn M. McElroy, Assistant Chief Counsel, Senate Commerce Committee, Washington, D. C. Dear S ir : In response to your telegram of even date please be informed our arrest reports, Nos. 53626 and 53627, do not relate to Howard Vincent Morgan. Those portions of the photographic copy of the microfilm pertaining to these cases should have been removed from the reproduced section before it was mailed to Washington. Except for the limited information contained on an index card remaining in the crime file, the other incidents mentioned in your message are no longer of record at this headquarte rs. The covering reports were routinely destroyed during a clearing of obsolete records. They were not reduced to microfilm. A copy of the index card is enclosed. Yours truly, H. G. M aison, Superintendent. 2-8-37 21426 EAR. FROM SERV. STA. OK. Wasco County COW CANYON SERVICE STATION, On Highway 97, between Maupin and Madras, Oregon: Reports the the ft of one new tire, and several cans of lubricating oil, on about July 30th. One HOWARD VINCENT MORGAN age 22 yrs., who was arrested by Portland Police on Feb. 7tli, admitted the above theft, also stated he sold the tire to Norene’s Serv. Sta. in Portland, but did not know what became of the oil. C. A. GLEN.

Salem, Oreg., May !t , 1961. J ohn M. M cElroy, Assista nt Chief Counsel, Senate Commerce Committee, Washington, D.C.: Retel date, Howard Vincent Morgan, C.A., Glen, former State police officer, is now deceased. Mark “OK” on index card has no special significance and is not peculiar to this particular case. It is the usual marking used regularly at this hea dqu arters to denote on the index card that the case has been cleared. II. G. M aison, Superintendent, Oregon State Police. Mr. Morgan. The statement is false. Senator Scott. I s that all you have to say on that ? Mr. Morgan. The statement about my alleged admission is false. I have heard and I ’m sure you have, many times of police putting com­ ments like that in their records. The disposal and the entire history of this case does not warrant that statement. If we are now trying to establish my guilt or innocence in this matter, we are tryin g to do something that, was done 25 years ago----- Senator S cott. The biography you submitted to the committee and the letter you wrote concerning your financial holdings does not men­ tion the Pioneer Construction Co. of which Mr. Eatch is president, Mr. Eatch being the man who made the affidavit on the entire matter. Was there any reason why that was omitted from the biography, Mr. Morgan ? 44 NO MINATIO N OF HOW ARD MORGAN

Mr. M organ. Yes, there is. The reason is that that is an invest­ ment of my wife’s and not mine. I temporarily took the position of an officer in that company to keep an eye on the investment. Senator T hurmond. I can’t hear you. Will you speak up ? Mr. Morgan. Yes, sir. Senator S cott. Well, the listing lists you, as you say, as secretary- treasurer, Howard V. Morgan. There is no listing of your wife. Is that a corporation ? Mr. Morgan. It is a corporation; yes. Senator Scott. And would you mind telling us, then, how the shares were divided and in whose name ? Mr. Morgan. She owns about 30 percent of the company. Senator S cott. Y ou don’t recall how the shares were divided? Mr. Morgan. N o, sir. Senator Scour. Now, the White House press release has just been called to my attention, Mr. Morgan; I did not know this. The White House press release of January 26, announcing the President’s inten­ tion of appointing you makes this statement: Howard Morgan, who is pa rt owner of Pioneer Construction Co., in Portland, Oreg., th e Oregon Public Utility Commissioner in 1957 and 1959— and so forth. [F or im med iate release. Office of th e W hite Ho use Pre ss Sec re ta ry , th e W hi te House , Ja n. 26, 196 1] President John F. Kennedy today announced his intention of appointing Joseph Charles Swidler, Nashville, Tenn., lawyer, and Howard Morgan, former public utility commissioner of Oregon, to positions on the Federal Power Com­ mission. » » * * * * » Howard Morgan, who is pa rt owner of Pioneer Construction Co. in Portland, Oreg., was Oregon public utility commissioner in 1957-59. Oregon is the only State which concentrates all regulatory powers in th e hands of one commissioner. Mr. Morgan is a gra duate of Reed College in Portland, after which he went to the Office of Defense Transportation. From 1943 to 1946 he was in the Naval Air Transp ort Service of the U.S. Navy. Afte r the wa r Mr. Morgan worked in the purchase and sale of heavy construction machinery and then livestock ranching in Oregon. For 2 years he was a member of the House of Representatives of the Oregon State Legislature. In 1952 he was a consultant to the Defense Transpo rt Ad­ ministration in Washington. Mr. Morgan, 46, is married and has four children. Ilis home is in Sisters, Oreg. Senator Scour. Where did the White House get the information tha t you were a part owner of the construction company of which Mr. Eatc h was president, if you say you did not report it to the committee here in your biography or in your statement to the committee of your holdings, and tha t you have actually no interest in this company? Where does the White House get this information ? Mr. Morgan. I am not entirely sure, sir. I do have an interest in the company, naturally, but as a technical matter I do not have an ownership in it. Senator S cott. Was the White House press release wrong or the statement submitted to the committee wrong, then ? Mr. M organ. I think in a stric t legal sense, and technically, the Whit e House announcem ent is wrong. NO MINATIO N OF HOW ARD MORGAN 45 Senator Scon'. Mr. Morgan, does not the Oregon law require an officer of the corporation to be a stockholder ? Mr. Morgan. I do not know, sir. Senator Scon. You are not familiar with tha t law? Mr. Morgan. I am not. Senator Scott. The Corporation Commission of the State of Ore­ gon does list you as an officer, and I thought you could clear that up for us. Salem, Oreg., May 1, 1961. J ohn M. McElroy, Assista nt Chief Counsel, Senate Committee on Commerce, Senate Office Building, Washington, D.C.: Pioneer Construction Co., Inc., December 9, 1959. Officers are Jac k R. Eatch, president, 7204 Northeast Sixth. Portland, Oreg.; Howard V. Morgan, Secretary- Treasurer, Black B utte Ranch, Sisters, Oreg. Frank J. Healy, Corporation Commissioner. Mr. Morgan. I am s orry; T cannot. Senator Sc on . May I ask whether or not you disclosed all of the circumstances of these two arrests when you were interviewed in con­ nection with this appointment ? Mr. Morgan. I disclosed the circumstances of the case you have just been discussing, Mr. Scott. I failed to disclose the circumstances involving the case Mr. Schoeppel was discussing for the reason that it did not recall itself to my mind at the time. Senator Pastore. You mean the assualt charge? Mr. Morgan. Yes, sir. Senator Scon. Then, if it be correct that there was no informa­ tion at the White House about the assault charge your statement ex­ plains that, that you did not disclose that because it was not in your mind ? Is that right ? I want to be fair in stating it. Mr. Morgan. Sir, I may be absent-minded and sometimes I am naive, but I am not stupid. In an appointment of this kind I knew that I would receive a very thorough check by the Federal Bureau of Investigation and it therefore was incumbent upon me as an obliga­ tion to the man who had appointed me to make certain tha t no un­ expected matters in this situation would be called to his attention. I made an earnest effort to apprise him of everything he should know but I did not apprise him of this so-called assault case because it did not occur to me. Senator Scott. Your statement to this committee during the pub­ lic hearing and by letter is to the effect that this 700-acre ranch took practically none of your time and that either its earnings or its losses were modest; is that correct ? Mr. Morgan. Yes, sir. Senator Scott. And would tha t have been the case from the time you first purchased the ranch? Mr. Morgan. It is a 560-acre ranch, I believe, sir. No. Wlien I retired as public utility commissioner in Oregon I put in about a year and a half of very hard work on this ranch. It took all my time for that length of time. Since then it has taken very little. It was run down and needed building up and some heavy machine work, quite a bit of construction, and I was fully occupied with the ranch during that time. I no longer am so occupied with it. 46 NOMINATION OF HOWARD MORGAN

Senator S cott. Your full-time operation would then have been for about a year and a hal f; is tha t what you said ? Mr. M organ. Approximately that length of time, yes, from the first of 1959 until the first few months of 1960. Senator S cott. Well, I am informed here tha t your 1952 form 57 says that from November 1948—this form being filled out in 1952— you engaged full-time in ranching and that the earnings were $12,000 per year. If that statement is correct that would be a 4-year period rather than a year and a half ? Mr. M organ. Sir, we are talking about different ranches. In 1952 I owned a ranch in Monmouth, Oreg., which was sold approximately at the time I left the Oregon Public Utility Commission office. I purchased another ranch in the fall of 1956. There was a period there when I had two. The ranch on which I spent a year and a half building it up is the one which I presently own and it is not a 700-acre ranch, it is 560 acres. Senator S cott. During tha t time were you engaged as a transpor­ tation consultant? Air. Morgan. I served the Oregon State Grange in tha t capacity between the years 1947 and 1953. Senator Scott. N ow, Mr. Morgan, there are several forms which were filled out; March 11, 1942, you filled out Civil Service Commis­ sion form 375 a form which is used to determine noncompetitively the qualifications of a person when official action is proposed in his case. In this case it appears to have been taken out in connection with your application for a commission as a U.S. naval officer. I am familiar with the form because I have had to fill out the same one. Question 8 reads as follows: Have you ever been arre sted , or summoned into court as a defendant, or in­ dicted, or convicted, or fined, or imprisoned, or placed on probation, or has any case against you been filed, or have you ever been ordered to deposit collateral for alleged breach or violation of any law or police regulation or ordinance whatsoever ? Your answer on this form is “No.” This form contains an instruc­ tion which reads as follows: Any false stateme nt in an application, * * * or presentation to the Commission of any such paper, is a violation of the law and punishable as such. The form also requires an oath in the following words: I, the undesigned, do solemnly swear or affirm that the state ments made by me in answer to the foregoing questions are full and tru e to the best of my knowl­ edge and belief. So help me God. The form is signed by Howard V. Morgan and sworn to before a notary public for the District of Columbia. Now this I am told was the one pertaining—there was another one regarding the Navy—this is for the appointment in the Office of Defense Transportation, this particular form. I have signed this one myself and I thought it was the N aw form. NOMINATIO N OF HOW ARD MORGAN 47

ST ATE S CIV IL SE RV IC E COM mTssl W A S H IN G T O N , D . C.

TEMPORARY APPOINTMENT, TRAN SFER, REINSTATEMENT. OR PROM OTION. ETC. (NONcoMrenTTvn (Thte lkr« to to tetoteaa. ■ »r— , lUtHWy. lb* of • swwa w in *«tetol artto* to *rw*o*^ '■ Ate cmb. Il itoaK to* «Umtoto4 •

M ck paper, Is « violation of the taw and pnniahable as each . Alt answers most be in ink or typ ewriting. If more spare is repa ire d, an additional sheet securely fastened to this for m may be used. Answ ers on such she et shou ld be numbere d to correspond to questions. pvtatyw • atolaly la Ink. or t7***Hto i«at a » Zo7Z«wi zia blot If a « • * “Mza. Mar* A. I j Ratin g ...... Ap plica tio n Xu -----Horarri Y. -Morgan...... ------| Kind of exam ination _ ...... ___ 15 41 la y B pule vard ______Place ...... _ A r lin g to n , V ir cin j* ' D a te ...... ___QLaba" 1524 ...... ApplicationApp ...... approved ...... J j » !L sh or n .. . . appro ved

L («) Ctoit Ito tortoto Ito kbkfc (kk to m k toln, fled: □ I M t o l t o e l X ■ ' k k . X □ Ki»arr»««7 Br»l aw ** t Ual □ CtaaaiArailaa. (6) Wba( tf««arlaara< or »*e*ar y« or no) .. .. T a * l ch.(.) itotouwr~r tom J a n .2 2 .1 9 1 4 ...... ib ia « w .i r » .i M Ill la a ja o k . Oragcw L Cha la Iba blaaha bate* a detailed stelanat ef y*er ed oeallesu lacladUw dalea: (a) Cn* ■ ir wb—I: A tf a b d f w ...... S * p t . 1 9 2 0 ... 1...... to ...... J tL D fl..l3 2 8 . 1 . r»*

(») Iltob arbaal: Na-a a>d tecaitaa . . * Ia ff a r O a j X r E o r t l o M , - OregOJQ.

S tip ta . 19 30 . I" JllTIB . l3 3 4 Hlcbaat rrede raaa»latod 4 t h y T j * F-»v r»^-1i,elrd’ Yc?l ' ((l it* h»tb graduate in-1 U0

Vxd .Tk.of Qragon E ugen i. Oregon. 9 /3 5 5 /3 6 26 O on em l — none te ed C all age Portland,O re gon 9/3 7 6 /4 0 66 Eo on oia las 38 B. A. 6 /1 5 /4 0 Unir. of CallfornisUerteley, Calif.8/41 l/42 7 Ec on om ies 7 non e ...... I ...... irwhere, and '.ndtowle lb* crwdlia rrrvised I A ll nT jay ax po ri onoc* hath o ca de a l c and operati onal* . re Tol yo d around. n£>tor f r e i g h t > Wrote B> A* theel6 on l t j waa p rep arin g ¥.A . t h e s is a t li .o fC . b efo re oom ing to D.C.

NAME OK POSITION AND l » IM « . o r »»LTIEH

, IXiring th le p erio d I was -e m pl oy ed by a la rg e number o f co n- a h e o o n i | . ^ s « 8 s M . t W § j ? i S r r« ^ A f e ‘ { h s g g s ? i i n 9 r ^ ? y . du ty du mp-truc ks I n V ar io us oa paolt le a from d H ver to fo re men; John Y o u ell , BxeoVaR ATe , C le r ic a l and su D eryib o ry d u tie s In C onaolidate d F re ig h tw y s ‘ ? Bepar ^m efits ° f the P ort la nd Oregon illOOO ; «“ n o f f ic e , and .h o p .. IXiring t h is p erio d 1 engaged.n yses e l f in d ep en d en tl y as a rese aroh man fo r th e purpose of Sodducting t r a f f i c and o p era ti o n s in v e stl- r a tio n s and p r e sen ti n g th e r e s u lt s as evide v id en enoe oe b e fo re th e ICC i n b e h a lf o f l i t ig a n ts b efp re th a t bod y. (* 15 00 a y e a r ) Board o f I n v e .t lg a tio n Re search a n a ly st in a stu d y o f th e 4 R es ea rc h, Exeo? 8 p u b t o O ff io e o f t h e P res. {$2000 fifg fi w ij - — - - “ ° ei

iv Muii s f a c e is O ot ia a A 8BFABATE MtifcET ABB ANGEL* AM ABOVE 1 2 ’9 ! 48 NOMINATIO N OF HOW ARD MORGAN NO MINATIO N OF HOW ARD MORGAN 49

Department of the Navy, Office of the Secretary, Washington, D.C., May 1,1961. Hon. Warren G. Magnuson, U.S. Senate, Washington, D.C. My Dear Senator: This is in reply to your letter of April 17, 1961, request­ ing information concerning a statem ent which may have been made by former Lt. Howard V. Morgan, U.S. Naval Reserve with respect to any arrest for viola­ tion of Federal or Sta te laws. The Chief of Naval Personnel has furnished me the information upon which to base a reply to your inquiry. A review of Mr. Morgan’s naval record fails to disclose any evidence of his having submitted any stateme nts under oath or under penalty of perjury with respect to any arrest for violation of Federal, State, or other law. However, on his application for commission in the U.S. Naval Reserve submitted August 6, 1942, Mr. Morgan indicated that he had never been arrested or been in the cus­ tody of police. A copy of the application evidencing this information is en­ closed as requested. Form er Lie utenant Morgan’s record contains no furth er information relative to th is m atte r. I trus t th at the information supplied above will be of service to you. Sincerely yours, Paul B. Fay, Jr., Under Secretary of the Navy 50 NO MINATIO N OF HOW ARD MORGAN

AFP UCAWN FOR COMMISSION W U. 5. NAVAL RESERVE

...... A ug us t 6j_ .1 942 iP»Ml fm «: -M Jfew ua A.X ijfteFJ Lt.. .MstegBa ______(Dot* ia l»U > — 15AJ.-K.aj. - j U r l i w t f .? » * „ .V l r & i a i a ______. ' 4 . ■ w * «8w~»yL. ,« The Chi ef o f the bu reau of N av ig atio n,

YU: th e O lr eeto r of. Bevel O ff ic er Freiiwreahet Sub ject A pp lica tion frfr appotc tn ea t aa Kwatgn ..-JD J t £i ’ ’ > » • . • |------En cJoeuree: (A) Evi den ce o f o ll lz sn eh ip . (B) Three le ite r e of re co am nd et io n (0) O ff ic ia l tr a n s c rip t of p rio r a i l i t a r y < serv ic e, o th er than V. 3. Nary 1 ,.IS 4 Cer t if ice toe of edu oet to e .

1. X r e j e c t th at 1 be a ppo in te d in th e U. .3. Navel j Rea er re as SS tft ieR M. U lL f S u - o f ¥ 4 * . * &> «*»! ’ iar«4» corp*. «!»»»• ft, Th» fo llow in g in fo raa ti o n co ncerning th e u r- i do re igr.sd i« fu rn ished fo r consi dera ti on. (a ) tfct e end pla ce of b ir th Jan u ary . 2 2 , lV l< i

‘fctU sm a. o V O ra ft aa

(fc) C it iz enship ... . (9. »l .(•l* <( wir. ltw tiw : i „ K acaU cc «U*A ~ f lf jC a d i f t a o l a . G.rs».-.>uata..5L,hanJ.» .A s’i W . o . j , „ C a l l £ . ~ - „ ~ . JUTM> «tu~e rtttMtiveUM •:. I i A m I m i

Id )* M il it a ry ' or na va l c r Coast Guard ta rv lo e (CH*w ...... 4«Vf.. JfcBIB...... ------MiUM, ♦-»■»**. feoM«r ratlKpa. -

' Vi»7, «ta»«tia

t»* SU U whether a t preaeat a »eaber of eaz Federal of* State a i’ ita r? oxjea-laa- tioci io as o o li te , reaarve, or retir ed a te tu * ----- ?.®------—

U» *vv». w t t t t o l NO MINATIO N OF HOW ARD MORGAN 51

'(<) S ta te wh eth er you have ev er been a rre ste d or in the cu sto dy or p o lic e .....______

I f so , fo r what? ...... Have you ev er been in a reform sc ho ol . J a i l , or p e n it e n ti a ry , or have you ev er bee n co nv icted of any crime * I f so,

s ta te th e circum stan ce s ......

(h) A ss ocia tions S ons

fi ) Seagoin g ex pe rien ce oth er th an na va l se rv ic e Ison©

(J) Complete st at em en t (a ttac hed ! of a l l busi nes s and p ro fe ssi onal ex pe rien ce {give d a te s, naoes of em ploy ers, e tc .) !

(k) I hn**^ ’have- not; pre vio usl y applied fo r a com mission in any of th e armed fo rc es of the Un ited S te te s. s lf answer is in th e a ff ir m a ti v e, ■ att a ch st at em en t as to branch of serv ic e co nc erne d, where ap p li cati o n was fil e d andet cl io n take n th er eo n, in cl udin g re aso n -i f ap p li cati o n was di sa ppr ov ed ,)

(l) Pre se nt occu pation’ by ••’hoe employe d. • (S tatemen t from re spoosi bis au th o ri ty a3 to a v a ila b ility fo r is sie sla te m o bil iz ati on, whenever re quired by Bureau of n av ig ati o n ’s in s tr u c ti o n s .) Mo tor T ra n sp o rt S p e s la lie t, O per at io ns S e c tio n -, M o to r T r a n s p o r t D i v i s i o n , f 'f f '. o e o f l * r *rsa« ? ra »j .'. rta tl n n ,

W as hing ton, ..D ./ -

(»; Othe r in fo rm al .o n co nc erni ng q u ail flo a t io ns no t shown above, in cl udin g .

guagos in which p ro fic ie n t I d ’ t e r3 o f r.O OKStend iK tio nJ I tote yeux-e o f eo .il.tg o Oe.f*n«a, but ’ t *oul<'. .r equir e co n sid era b le ra vio * to make mo p ro fic ie n t a t he. p re s e n t« (n) Kanes and addre ss es of th re e or more re fe re nces of in div ic ta i.. who ar e p: e el neat in the eo cm oaity . »no may be co nt ac te d as to a p p li c a n t’ s ®o’« ana pro fe ssi o n s! q u a li fic a ti o n s :

1»KP* Rob er t F. T e r r i ll , D iv is io n c f S pecia l He«e»,rch# Dep t -f S ta te , 'W ash,,''D lC . 2. Mr. Jpaa pfa 2. ^a stm en , D ir e rb o r, 'Vash., D .'O .tr . Fr an k S. Lan ds bn rg , D is tr ic t H r* a to r , «u re av o f Kot or C arr ie r? ', XC*, To rtX ao d, Ore gon . to) Hext of kin Jh ia ia a So r.b ott Itor ga n ...... Wife I Game) t M«tvw«-ah^» ,1541..S»»..£o.ulevaraL, A rli n g to n ^ Y .5 rg in ia ...... Make a l l Stalvm an ts comp lete in clu din g' d a te s, att ach in g a d d it io n al f ’-ges i f ne ce s­ sary . . . .. , O ri gin al j Io Beree u of navig ati on. Copies: D ir ecto r of Hav el O ff ic er Pro curement concerne d. ■ BurseQ eea etr ued.

Mr. Morgan, I wa nt to say righ t here th at as fa r as the assault and ba tte ry situatio n is concerned, assu min g the f acts are as given by you and by your associate, I am quite sure I would have done wh at you did if I f elt m yself endowed w ith sufficient phy sique and feelin g which imbued you at th at time. In oth er words, I wou ld have done wha t you did. Bu t, the fact occurred, you were arrested, you did pay a fine. There is a record of a fug itiv e warrant in this other ma tter. Th e crime is s tated as it is, it has been dismissed in the press as boyish offenses. I certainly do n't wa nt to argu e w ith th at. Bu t this form now was filled out quite a few years later , 1942, an d the re you said you had never been arrested, convicted, or paid a fine. Would you care to comment on th at ? Mr. M organ. Yes; I will be glad to. These two incidents as fa r as I am concerned are quite different and I had and still have quite a different fee ling about them . The matter involving the ti re was, as I said, a comedy of errors, mistakes, misunders tan din g from start to finish. Th ere is no g uilt, c ulp ability, or blame involved in the m att er as fa r as I am concerned and I have nev er f elt th at there was. On the oth er hand, there was nev er any way in which I could have avoided it. It happened to me as the same sort of t hi ng happens to many people. I t was a piece of bad luck. But I hav e always felt th at the arrest should not have been made, sho uld never have been made. In effect I was arr ested fo r the purpo se of investigatin g to find out w het her I sh ould have been a rre ste d or not, and the inv est iga ­ tio n proved th at I should not have been. I have always reg ard ed this incide nt with a fee ling somewhere betw een exa spe ration and mild outrage and I have perha ps wr on gfull y felt th at it was some­ thing I did not need to carry on my shoulders a nd explain fo r the rest of my life. I t is quite tru e th at on every occasion th at I have filled out a form 57 I did rememb er this case and I did refuse to r ep or t it. As to wh at difference th at made to the U.S. Government I would NO MINATIO N OF HOW ARD MORGAN 53 like to suggest that it probably made the difference of about 2 to 4 weeks of investigation to find out what the facts were and tha t is all. Senator S cott. In other words, you were helping the Government in denying the arrest by shortening the time which it would take to investigate your application ? Mr. Morgan. I am not being facetious about this matter, Senator Scott. Senator Scott. I am giving a literal interpretation of what you just said, if that is facetious, I assure you 1 am not tryin g to be facetious. You, yourself, said it would only have delayed it to tell the truth, and I am asking you whether in delaying something to tell the tru th you weren’t helping the Government by not requiring them to make an investigation to find out what the truth was? I am giving you full opportunity to say whether or not you agree with my ap­ proach to it ? Mr. Morgan. I said tha t the difference as fa r as the U.S. Govern­ ment was concerned was one of the length of time necessary to in­ vestigate the matter, if I had reported it, and find out the true facts. So fa r as I am concerned my failure to report it relieved me of an embarrassment which I had felt was not rightly attached to me and which I did not wish to be encumbered with. It is entirely possible that my attitude was wrong. I am merely telling you what my attitude was. Senator Scott. The answer which you have given us, then Mr. Morgan, in order not to belabor this thing, would also apply to the form 57 you filled out on October 31, 1949, which was an application for Federal employment in connection with the 1950 census where again you said— you answered “No” to question 30, which is sub­ stantially the same question except that it excludes minor traffic violations and is after the age of 16? Mr. Morgan. Yes, sir. Senator Scott. The same answer there ? Mr. Morgan. Yes, sir. 54 NO MINATIO N OF HOWARD MORGAN NO MINATIO N OF HOW ARD MORGAN 55

KCCMTlNUtO I EXACT TTTU OF VOW POSITION oxssifvcatwn shade I SALARY OH CAMSMa UZm » MMarcJ serv>oe)l I | FEH >i1y 1 aaA D e a le r -B r o k e r 4 * t o BOM y r PLACE OF IWPLOi • HAW AMO m u OF IMMEOUTt WPEHWSOR

CMS (o —floloiolo fjff. uw .ro . fcwfooo o* oofoO/ffStafoof. ooS f o.) S e l f P u rch a se an d s a l e o f w ar s u r p lu s h s a V jr ^ c o n s t r u c t i o n a « o h < n e i - y pj—o amo moo of twigrro hm h u o ff~i T ra n sfe r w ed o a p i t a l A e a r n ln e s t o p r e s si t ln v e s t a e n t s o

S ea T X ln d ..n f. ls ia ln aaao-a h on *....

S9 t OATES or tOfWTMfXl (moo lA., I EXACT TITLE OF VOW POSITION l a 4 J A d m in is t r a tio n & o»m« July 1946 to, Ootober n jia OF EMPLOYMENT (oifyand .

S tf W r i F » I . C a d r. B a lt e r A Fal l e n , C .O ., V a -1 0 , MAT I, I ARO AOOHESS OF EMPLOYER(Arm . o r^ n u ih o n . or p ta o n . a tad* F BUSINESS OH OHGAMZA (•. wholoonia tali. iaourai mo de^orrmonf, fcurMU or it abli ah m an t. an d dir iaion) an utoc tora o t loeba. o*

Bo S . Nav y (N a v a l A ir T ra n sp o r t S e r v i c e I N a v a l A ir T r a n sp o r t 8 o r r lo o 3 KINO OF EMPLOYEES S XJOH LEAVING 2 0 C l e r i c a l * A m ln le tr a tlw e “e l e a s e d f r o a a c t i v e d u t y . c o n c lu s io n DESCRIPTION OF YOUR WORK ■ a t wa ro------

- . I n i i n c h a r g e o f a l l a d m i n i s t r a t i v e w o r k , a n d i n a d d i t i o n m a r e a p o n n ih le f p r a l t ..JKflEBCPnejX. .A A fl lc naente and t r a c e f e r e f o r A ir T r a n sp o r t S qu adron 1 0 , w h io h a t t h a t t i n e M a e t h e h e e r i/p ie r t e r e i q u o d m n f o r t h e A e l e t l o Y B n g n f t h e H e v a l A i r T r e n e p n r t —S a e s la a a ______

E M P L O Y M E N(m T on th .. EXACT TITLE OF YOUR POSITION mo** Ja n x a ry 1 9 4 3 ^ J u ly 1 9 4 6 v a r i o u s , s e e b a lo w ACE OF EMPLOYMENT (e«fran d Stata) TITLE OF IMMEDIATE SUPERVISOR Vfcahington, DC, Mi and, N at al , B ra zi l 1 < s t o n o 1 1 Un FranftAaoo, ~ f . V a r io u s . ” * « C d r. * • F* NAME AMO A00RE5S OF EftPI tura of l oiu i, at o.)

V . So Nav y N aval A ir T ra n sp o r t S e r v i c e " 1 ^ " V S £ oV3 ,n 2 S £ fi S g i fa ‘o ¥ ' i T l s p e c i a l t i e s . REASON FOR LEAVING ^ oger a t ln n n K ^ s d m iifa tr a t lv e . e n a l y t l a a l . e t c . T r a n s fe r r e d t o c a h e r d u ty >« UF YOUR WORK * ..B ee lnnine ..ln .KATS. aa j n .lngADerlanQed . ftia tgn. I r a i p i T m pr og re ssiv e ly more __ I w a r t a n V a r a le n n < m t s iia t ilf l» e l.ly .lA e .l.d ._ t .h e p > Q A r t i Q n Q f.. a a a is ta n 5 .. D p e r a tlQ D A _ flm n 3 e S £fe vS M B E »S M 'f tl y« l e .. p la n n in g and a * n ix d .s tr a tlo n j f o f t h e o v e r s j m . Q P .e rj rt i9 IM _at_ ___ * h ® -h e a d g u a r te r i sq u a d r o n , P a o l f i o W i n , . H .A .T .S ^ When t h e A s i a t i c W ine w a s ___ _ e s t a b l i s h e d I was t r a n s f e r r e d , a lo n g w i t h th e i C . ~ 5 . , t o t h a t w i n , a s M t in i s t r a t i o n and’“P e r s o n n e l f i f f l o e r ......

1288 NOMIN ATION OF HOW ARD MORGAN

F EMPLOYMENT (i EXACT Tir u Of YOUR POSfTKJH SALARY OR EARNINGS: ° lair Barlneas analy st F EMPLOYMENT (ej

■ continuBtinu sheet (Standard 1 . S8) or a sheet of ( ■dlltCM. date .tf^Wllh. Atul I r of thia application. 17. MILITARY TRAINING In t below, describe any Bek. Detailed information i appointing 1 you meat effectively. Indicate ictual amount pages may l->e uaed to give full descriptions.) DAcs LOCATION FROM DCSCRIPTIOH OF TRAINING N9V, T.d.JBJSkJAS...... GdCOell Vr.altbiw» KT. Indcfitrinatioaa. EscK. Of fic er.. USEB. .

I

18. EDUCATION. (CsreJobid baa t dr a da oomp tat ad): (A) GIVE NAME ANO LOCATION OF LAST HIGH SCHOOL ATTENDED >• 11 12 MARK(X>THE APPNOPRIATV BOX TO INOKATI SATISFACTORY COMPUTK7N OF D •’-HMRT ATT KNOO.[7 ] *»*» I* . H SCHWX [ J NO MINATIO N OF HOW ARD MORGAN

m w awah&catiane and fctoeaa ter the iraaitio^ for which y

SR. ARE YOU A OTUEN OF OB 00 YOU OK /L-TttANCE TO THEX dW l^ » DCES TNE UP/TTD STATES GOVERN MOTT EUF/T? !R A CWA l CAMO TV ARY WLaTTVY or Y It ynm -.. ^ o , it - r M .“ RNow io /torn 39 tor SM Jf onoh Faielfra (oM nnarot (.7) prroont oddraao; (3) rorotfrnobip; If ) Depart cm nt or Aganoy hyirhjah cmpApyaa, anJ (5) bind a ARE YOU WOW . OR HAVE YOU IY»S t^f.ctu. iK.i«wiiaHs roa -uisnw n r o « rrxtEsnet as AAzVCUNOW OrtMAVE'/OUfMB^ni.A.MKWBAn^.'JIYCWiSZATTON. r S E i ' i n AS&JCtATTON. MOVEMENT. C-HOUF. O» CiJMBmSTXW OF FUaONSWIUCNAP-.Zsss: UXATESTHEOVEKTHPCW OF OUR OWl .n in O ** . FOAM OF OO^TNWtt. ■ or AMOBUAmZA-noB./'SwaAr.cn.-AOvEMtHT.cAcuF.oBCOMia^noB CXC Fora 14, tcRethcv with "icof rpecifted thereto. PERSONS WHICH HAS ADCSTKD A KXJCT OF ADVJCA1'IMS ca APPRCVtNNS. If yva err • WAJI-11MB VXT BXAX aat rlatotog B i ii W>y waftoeMO, wTHE OOMMi4SK*» OF ACTS OF FORCE tT WOLFMCE TO DENY OTICR IVNSORSyou Aaaid NOT eatoait >vcr dtr^oryy ciO» Ctta rpphpir t —. PraAmcawB T HUB RMHTS UNDER TM* CONSTtTUTTyA OF T Mt iNUTEDSf ATE30* OFba SEEK- toatofctoUy eradnrl ho yoa nod hrsstf -BwwI. ?oo wfti bo reRecr->5 to wbrR WGTO ALTER TMt W«UCF OOvrnRMbC or TM^UMrrajS?..TO SY UV7JR- to •>« l A VETERAN'S wtww WHO HAS K0Y Rf kURWIOt- ouch debar man t in It em »g . CD) ARE YOU THE WIFE OF A YTTOUM WHO HAS A SERVICE CONNECTED QSA8UJTY WHICH WSOUALinES HIM FOR CTRL SERVTCE APPC-HTMEHTT. .

I ea pre aaotl y ft ae sb ar o f th a House ii t ^’tjp.ai'iiS at.Iv aa .' -i Stt Ch-gaa "C ig ts xi tu ra . r ua da rs ia ag t S st I f I a IJipola eM Tid a JoiK Io n dfaepT SY®"® ■ Y y ’«ial).S.gcT»rflO«asr-TTiMBV-TartEK- -t ia s ad l a t al y f r o a ■bha-l-flElrlab«ra»--sB>A -1 -s haii -do »o , o f oo ur ear

of tHa apphcancsA.______Before »«

A p p r o v e d b y Ci vil S e r vi c e C o n u a Ua xt a D e p a r t m e n t o f C o m m e r c e F o r c m a p p r o ve d. B U R E A U O F T H E C E N S U S B u r e a u of t h e B u d g et. A P P O I N T M E N T A F F I D A V I T S I M P O R T A N T. — B e f o r e s w e a ri n g t o t h es e a p p oi n t m e nt a ff i d a vit s, y o u s h o ul d r e a d a n d u n d e rs t a n d t h e

att a c h e d i n f o r m ati o n f o r a p p oi n t e e

C o m m er c e C e n s u s S al e.iij .. Ore g o n, ( D e p a rt m e nt o r a g e n c y) ( B u r e a u o r di vi ai o n) ( Pl a c e of e m pl o y m e nt) 1 ...... K 9.’‘. ar d. _ V.... 5I or £ ari — ...... d o s o ie m n ] y s w e ar ( or affir m ) t h at — A. O A T H O F O F FI C E I will s u p p o rt a n d d ef e n d t h e C o nstit uti o n of t h e U nit e d St at es a g ai nst all e n e mi es, f or ei g n a n d d o m esti c; t h at I will b e a r tr u e f ait h a n d all e gi a n c e t o t h e s a m e; t h at I t a k e t hi s o bli g ati o n fr e el y wit h o ut a n y m e nt al r es e r v ati o n or p ur p os e of e v asi o n; t h at I will w ell a n d f ait hf ull y dis c h a r g e t h e d uti es o f t h e offi c e o n w hi c h I a m a b o ut t o e nt er, S O H E L P M E G O D. B. A F FI D A VI T A S T O S U B V E R SI V E A C TI VI T Y A N D A F FI L I A TI O N I a m n ot a C o m m u nist o r F a s cist. I d o n o t a d v o c at e n or a m I a m e m b er o f a n y or g a ni z ati o n t h at a d v o c at es t h e o v ert hr o w o f t h e G o v e r n m e nt of t h e U nit e d St at e s b y f o r c e o r vi ol e n c e or ot h er u n c o n stit uti o n al m e a ns or s e e ki n g b y f or c e or vi ol e n c e t o d e n y ot h e r p ers o n s t h eir ri g hts u n d e r t h e C o nstit uti o n of t h e U nit e d St at es. I d o f urt h er s w e ar ( o r affir m) I will n ot s o a d v o c at e, n o r will I b e c o m e a m e m b er of s u c h or g a ni z ati o n d uri n g t h e p eri o d t h at I a m a n e m pl o y e e of t h e F e d er al G o v er n m e nt. C. A F FI D A VI T A S T O S T RI KI N G A G AI N S T T H E F E D E R A L G O V E R N M E N T I a m n ot e n g a g e d i n a n y stri k e a g ai nst t h e G o v er n m e nt of t h e U nit e d St at e s a n d t h at I will n ot s o e n g a g e w hil e a n e m pl o y e e of t h e G o v er n m e nt o f t h e U nit e d St at es; t h at I a m n ot a m e m b er of a n or g a ni z ati o n o f G o v er n m e nt e m pl o y e es t h at ass erts t h e ri g ht t o stri k e a g ai nst t h e G o v er n m e nt of t h e U nit e d St at es, a n d tli at I will n ot, w hil e a G o v e r n m e nt e m pl o y e e, b e c o m e a m e m b er o f s u c h a n or g a ni z ati o n. D. A F FI D A VI T A S T O P U R C H A S E A N D S A L E O F O F FI C E I h a v e n ot p ai d, o r off er e d or pr o mis e d t o p a y, a n y m o n e y o r ot h er t hi n g of v al u e t o a n y p er s o n, fir m or c o r p o r ati o n f or t h e us e o f i nfl u e n c e t o pr o c u r e m y a p p oi nt m e nt. E. A F FI D A VI T A S T O D E C L A R A TI O N O F A P P OI N T E E \ \ T h e a ns w ers c o nt ai n e d i n m y A p pli c ati o n f or F e d er al E m pl o y m e nt, F or m N o. . 5 7. _ _ _ _ _ d a t e d ------, 1 9... 42 L, fil e d wit h t h e a b o v e- n a m e d d e p a rt m e nt or a g e n c y, w hi c h I h a v e r e vi e w e d, ar e tr u e a n d c o rr e ct as o f t his d a t e wit h t h e e x c e pti o ns n ot e d i n t h e D e cl ar a ­ ti o n o f A p p oi nt e e o n t h e r e v ers e o f t hi s f o r m. (I f n o e x c e pti o ns, w rit e " N o n e ” o n t h e D e cl ar ati o n of A p p oi nt e e.) F. A F FI D A VI T O F N O N DI S C L O S U R E I will n ot dis cl os e a n y i nf or m ati o n c o nt ai n e d i n t h e s c h e d ul es, lists or st at e m e nts o bt ai n e d f o r or p r e p ar e d b y t h e B ur e a u of t h e C e ns u s, t o a n y p ers o n or p ers o ns, e x c e p pt h p a e d e si g n at e d b y t h e Dir e ct or.

S u b s cri b e d a n d s w or n b ef or e m e t hi s ...... d a y of .... 9 ®. ® ®?l ber...... a . d . 1 9. 4 9., ...... a t ...... ( Otr)......

[s e a l ] . A d 3i al Ar 5t k Y fi.. Q TIl. c fir 2 6» N O T E. — m u.) 1 2 4 3. S e cti o n 2 3 6) It t h e o at h i e t a k e n b ef o r e a N ot ftr y P u bii a t h e d at e o l ei pi r a ti c n of h it c o m ait si o n s h o u l d h e a h o w a. N O MI NATION OF HO WARD MORGAN 5 9

BECLA RATION OF APP OINTEE T hi a f o r m i s t o b e c o m pl et e d b ef or e e ntr a n c e o n d ut y. Question 3 ia to be ans wered in all cases, other wise ans wer only those questions which require an ans wer different fro m that given to the corresponding questions on your ap plic ation for m. If no ans wers are diff erent, write " N O N E" in It e m 10, belo w. Any f al s e st at e m e nt i n t hi s d e cl ar ati o n will b e gr o u n d s f o r c a n c ell ati o n of a p pli c ati o n or di s mi s s al aft e r a p p oi nt m e nt. I mpersonation is a cri min al offense and will be prosecuted ac cordingly. L nus wr KOORESS an d nu mter, a/tr and Stale)

t W) S ATE or BI R T H I ( B) PL ACE OF BI RT H ( cjfjr or tor n an d St ate or o ou ntr y)

A (A) I N CASE OF E MERGENCY PLEASE N OTIFY ( B) RELATI ONSHI P ( O STREET AND N UMBER. CITY AND STATE ( D) TELEPH ONE N O. R o ute 2, B ox 26 H rs. R osin a M organ T.'if e M on mouth, Oregon 4. DOES T HE UNITED STATES G OVERN MENT E MPL OY, I H A OVIL1AN C APACITY. A MY RELATI VE OF Y OURS ( OT HE R B Y BLOOD OR MAR WAfcQ WITH WHO M Y OU UV E OR HAVE LI VED WIT M W T HE PAST 24 M ONTHS? — lf w. t or ^ e h avch n Utiv. Sil In I h. bla nk, brl wr. It .d dlh o nal ,p.o e t, n r.ii.rr, ce m p ht. un d w It. m IS. (1) P OSITI ON (2) TE MP ORARY OR NOT W A R - i SI N G L E P OST OFFI CE ADDRESS R E L A TI O N. RI E D j 3 * " ® 1* NA ME (3) DEPART MENT OR A GENCY I N W HICH S HI P ( O /r a atra at nu mb er, if an y) E MPL OYED ( C he ck one)

1. . - ...... —

1

A

3 10. SPACE FOR DETAILED ANS WERS TO OTHER QUESTIONS INDICATE "YES’* OR " N O" ANS WER BY FLACINQ “ X" Y U N O TF e m IN PROPER COLUMN WRITE I N L EFT C OLU MN N UMBERS OF IT EMS T O WHI CH DETAILED A NS WERS A PPLY

4. ARE YOU A CITIZE N OF OR DO YOU O WE ALLE GI ANCE T O T HE U NI TE D STATES?. " N ohe" (. A R E Y OU AH OFFI CI AL OR E MPL OYEE OF ANY STATE. T ERRIT ORY. COUNTY. OR

If yo ur an a war ia " Y ea”, iiv a detaila in it a m 10.

7. D O YOU R ECEI VE A NY ANNUITY F RO M T HE U NITED STATES OR DISTRI CT OF COLU MBI A GOVERN MENT UNDER AMY R ETI RE MENT ACT OR ANY PENSI ON OR OTHER CO MPENSATI ON FOR MILITARY OR NAVAL SERVI CE?______If yo ur ans w er io " Ye a”, lir a in It e m 10 reeaon for retir e m ent, th at ia, a^o. optio nal disa bility, or by raaaon of voluntar y or involu ntary aep eration after 5 yoara' aarvioa; a m ou nt of retir e m ent pay, an d u nder w hat retir e m ent aot; an d ratin g, if retir ed fr o m milit ary or na val aervica.

a. HAVE Y OU EVER BEEN DISCHAR GED. OR FORCED T O RESI GN. F OR MI SC ONDUCT

ot e m ployer, data, an d raaaon in <

». SI NCE YOUR I6T H BI RT HDAY. HAVE YOU EVER BEEN ARRESTED. I NDI CTED. OR SU M MONED I NT O C OURT A S A D EFENDANT I N A C RI MI NAL PROCEEDI NG. OR

If yo ur ane war fa “ Yea”, Hat alt auoh oaaae un der Ite m 10. Crva in e ach cero: (j) Th e d ata: ( 5) the nature ot th e oftanaa or violatio n; ( 3) th e na me a nd loc atio n of t he c ourt: (<) the pe nalty i mpoaed, it tr y, or ot her diap oaltion of th e cata. If a ppointe d, yo ur finterpti nta will ba tak en.

INST RUCTIO NS TO APP OIN TIN G OFFICER

T hi s for m s h oul d be c hecked f or h oi d u.g cf office, pe nsi o n, s uita bility i o c on- nr cti o n wit h a n y record of recent discharge or arrest, and particularly f or t he f oil o wi n g; ( 1 ) Id e ntity of app ointee. — The appointee’s rler attn c and hand writing are ( 4 ) Ma mbera of F a m ily Section 9 of the Civil Service Act provides that to be co mpared with tha application and/or other pertinent pepers, The whenever tlieie are alre-d y t wo or more me mbers of a fa mily serving under physical appeerance may be chicked agsinst the medical certn.rrts. Tha j ro Sstioaal cr per manent appoint ment in ths co mpetitive service, no other a p p oi ntee z c. a y alro be questir-oed on his perxxud history for sgrcc m mt with his meaiber of such fa mily ia eligible for p.obatiocsl or per manent appoint ment In pret n uu* state mcate. tha co mpetitive service. The appoint ment* of persons entitled to veteran ( 2) A / a —I f definite are li mit* have been esta SisheJ f or t he p ositi o n. It s ho ul d preference are cot subject to this require ment. The me mbers^.’,fa mily nrovistot. «e drt enn uxd that applicant Is not outs'do the eg* rangy for appoint ment. does not «.pply to te mparcry snoolnt menu. Doubtful cases m«y fee referred to U ntil * ali e n is I uaade,s u m * the appoint ment may t ‘ — _ the appropriate office ef tbs Civil Service Co m mbtioo for decision.

t rsirrtss t m q I S 60 NOMINATIO N OF HOWARD MORGAN

Se nator S cott. Wo uld the same answ er apply to the 1952 undated form 57 but ap pearing to have been filed in 1952 in connection with services as a consult ant to the Defense Tra ns po rt Ad minist ratio n where you also listed a “No” answer to question 30 ? Would the same answer apply here? NOMIN ATION OF HOW ARD MORGAN 61

It COWTINUCO oath enklovnekt or i m m i A , ou rr titU or m a ktotion toannntcatioa anaan nerohn.pt or bro ker NANI ANO TITU ON INNAOUnU rt M O o T •aa, = ;..ou.txr.o.irtLh..afjry workhe av y c as o n str u c tio n msoh in er ------h« »rf .um lEB .«nk.aiTltlgfl...9f...the..aj.r.aav, of^Yerdt end Dock! ) du ringa th na e va l off io er ip th i __ The ob je ct wus to ae qu ire ca p it a l and tr an af er i t to lon g-ter m a" l iv esto ck ra nc h, I t was s u c c e s s fu l...... inv e.T trm nt in

m or ufuN naoir i m u A w ) DUCT TITU ON TOUN NOOTTUN •NAOI I SALANT ON No t . 1942 to Fe b. 1946 Uaval o f flo o r ‘.‘‘TO UN ' nntw ^ ott t («"n •"**•"* Permanent ba ses a t K AAeTTTUON" -680 0----5“- u ch .,i f D.C U e j » | . n iil*• am J. HJ1 l, Ho LA nolulu,IKIIa aUAUAU T. j H. i i va riou s XO AOMUSSOr»or employer (trm EMPLOYER . - a depa/dnenf. kurefu orM MtiUMn- . - *o Ao r * Ma a a f. i « « f Mor" M t . KAMO or auSAMSS OR OMOAMUAT* ram/ d I- f / r r j a rm Bureau”ol* eal«s and to help pla n tl • sons to. nt expa nsion o f t ho se pjperat io ns in oo-o rd lh ati on vd th o v e r a ll war jil an a.

3AITS ON tMTLOVNtKT {monffc. EXACT FITLE OT YOUR ROStTIOM “SuSvan f” “ Jan 1242 ljg Z .1 2 4 2 I Tra ns po rt sTAimne i m toaci or cMNAonmorr (« rr .nS SL aflon oaist ”**'• 1 2600 xa T MA 0 Ytashl n^torif D«C»______*J? 5!flmerJ fiiS 3*7 Vrelghfc Operation* se< bi r ANO ADCPVSS or EMPLOYER(Rrm. orAsniislion. (Irm , orAsniislion, oron person, person i,/ Fidefiu or —t*bli»hm»nt »n*J division) oH jla ci ur. of facAa. MeN.J MsaJ as g O ffio o of Defen se Tra ns po rtation, Co nserva tio n and re gula ti on o f n ati on 's TSJtd. __ Motor Transp ort D iv is io n ------w“iutN> ON KMNVOTI ' ' tr an sp or t f a c i l i t i e s in tim e o f wr r. J fe £ oomn isgion ed by th e Navy tt work on va ri ou s tr an sp or t pro hls ns. ctBcnmoM or your wonk ._1^. .Lusk. .wna._ta.as s is i_. the. .ch ief, .df ide defens e trnnAport.nrohlaiaA prep aration of Uai»o a..yjth Bongressiona l spokesmex conc erning th ose problems and ord er s, a ssis ta n ce to f ie ld o fflo e s a l l over t he 0 .3 . i n th e f.dn in ls tr a ti o n o f O.D.T orders , handlin g of appea ls fr om orders , .

1292 NOMIN ATION OF HOW ARD MORGAN

MTU or IM hnvefk’ (M«Af h. r ^ ) . exact Tiru or you* rasmoM IOJUMnOTIOWC hack or tuFUWMorr (otty •*<* State) I or iktfUkATVftvo'vacM

0 ADDRESS or EMPLOYER «trm. n, or OR ORCARtZATtOR (a g.. vhafeealetiik . i department. hcueau or aH abiM hiaaat. in d - 'jz zy aaenufaof uze o/ leoAa.

» or CMKOYcasurerytsed sy you

i requited, use a cnoanva'Joo (StaaU&m Fare, No. 58) or a e of birth, utd esamieenoe Utle. Attach IO inamr of thin appbeatisu. I ba any r'amie* received in of treiaia< received. such a* the Armed Bcrriccu (at* e-rtedy Hated I tare 16) that would aaaiat io« any epedal terries achooi ladkate actael ag-.Juot peaaa may be uead 'o g»v« full •as

____I a ..li jA a - . t h a - 4 u » y - . x a < j u a ^ t o d . j a a . . t 4 . . t a k a . . t J i 6 . . 1 ,jx llj0 K x O 6 .x a X ;c B & h fiC .. 0 £ J U Ii< .» i3 if lJ x _ l. _ _

hirbi an d. Qr-sgoi "Bsononio M ph iU ta tioj i o f th e T il lo u *« Reio ur oo i "Tor TKr i’ I. CDUCATKM. (Ctrele hs'dhear Jrerfe completed)- (A) aiVT. *AMK ANO LOCATJOR OT LAST MICH SCHOOL ATTXMOCD Je ffe rso n P o rt la n d , Oregon X(X)TM AFTRONtATr BOX YO IHMCATZ SATtSTACTORYCOHPLCTiOR

Uni Ta o f Orego n, Algeria r .. Or £g i ' 57a. ( 8 io UnlT., o f C a lif . O ra ^oat t. Dlv . ‘ EfE e'rr ip

t eaoNuamor *C a UXYtMiNO.O.M.VKVOUnCIIIttllAUCeKKDa.CXimVIlSmi'KJ'WA.yTlIUKCMMD. PESSKM

I i m Ll 1 mo am uro or ucsmc arc state,

rrst UCDOC os ccmricATt (rtA«> « & YCTI KlYL LAVO^U OR A/SlLiO W AJf* TOMCBR COUSTRlU IRWCATtlatest ucnur or crxnrKTAT? (n?n) 'OSJAMO or 0QyRTH£S.a)0AT5a AMO UDWJTW OF T M STEM? TMUrf. #RO Cfr XA3Q» OR n wre a (a- g.. m-hfary »XTK», hur.mM------*— tl. «* » ARY SPECIAL C YOUR PA TEXTS OR f W r W t BraslS Q mo» Ph ilipp ine! 3 b o . HJRUC 'R t* rr - /Jto P-.MUC RC«TK»e C fe.ral ifu -rlnv II . U»Y AWfXOAL STJUS Y B A/JD MACHINE*tfW^WT. ART) YOU CM USE. *KH AS C*KATTOR CP AHORT-WAYT AACeO. MULTtUTK. COMPTOM- ---- l srr-MAcn. tuoswy u uw . ymxtitk or rsoaswRAL KVYCSS Uasbo r. House o f R ep re se nta tive s, Oregon L eg is la tu r e. 1946-1 950 I2 9 T NO MINATIO N OF HOW ARD MORGAN 63

t A li.' i ae.c <’> u - i m ny. y *» cw »: » > W r, iT V u b i im ou W'- MOT related to vuc en l ate teve definite knowledge of —*----- ‘ ‘ I >iafier It em ------“1« OKXPElUKJfCJt). ----- UR1BF K 5 SnTSJnoiinKSSr (O/JC a— Afterw ow rent wrfdceae,In alu di nj e tr ee t a nd number) 1 ON OCCUM n » fc>d<3 Oea J . So lcno n A id e ® Fed er al ftii ld ln ^ , P ortl and, Oregon Fed er al D is tr io tf ct !» a k B» l*» Aeb ur g, D it tr lo t Q?.r«fetor, fo ra au o f Motor C arr ie r* , I.C .C P it to ek Block f9 rt if tW *9r'^ aa ifhan>B J» White Jaeit eoa Tow er, P ortl an d, Oregon Trai jp o r ta tio n A tt or ly : ’ l l ' u -w aafwa n a j k m t a m m ia i— m an -n r- •*- w im n n atem -r a m ra cairn » ARE YOU AN OmCUX OR EMPLOYEE OP ARY STATE. TERRITORY. COUNTY. OR MURKSPAUm _ M. a m you a crrzxx or oa do you owe allegiance to the .iwnro rrc: it ' Yea," fit a da taila in it e m SI H aC.UAN CAPACITY OR NAVE LIVED WITHIN THE PAST £4 MONTHS! If your entrtrer la "Y ea ." there in It em fo r SLACH auoh re la tiv e (/> lu l! na m e. (.3/ n reaant edd roa e; (f) Department (S) re lii io nahip . of appointment. or Ag en cy wh ich em pl oy ed , an d (3} ki nd I. OR HAVEyou ever k o i . * member or a fascist organ- SOCIAL IX ST MC TIO M FOR CLAIMING VET FRAN PREFERLNCE I. C*HA*E YOU EVER MEN. A MEMBER CFAMYORGANIZATION A. If you an eteLniuc preYarence aa a PKAC KTIMX VBTBK.V f ao boa d*ymc* t croup. or combinaytok or persons which ad- w VOCATtS THE OVERT HROW OF 0*1* COWRTfTVTlOHAL FORM OF GOVERNMENT. OR OF AR ORGANOATKti. AS9OTUTKBL HOVEMKXT. GROUP. OH COMB. NATIONJ W A h OR CA UP MO H VB raRA M. .n x * Vn c^ > I> re «L < f>.* zk ctm oZ uiZs»ch arfinn/jntiortt. t ___ ■*“ Szmxpa. oroom h in tt io n oZ p- rc on e a nd da tea of 37. lAl WERE YOU EVER IN THE UTBTEO STATES M'UTANY ON NAVAL SERVICE Cliro com ple te det ai l* of your aetiri ri et DURING TIME OP W/JIt...... m vke any ex plan atio n you deeZre ta fa rd in g hip or e et le iti aa th at ~ IN YOUR iD3Cr'ARGE CT SEPARATION PAPERS TO S YC*IR t. FINED ON jMPRtSOKED ON PLACED ON PROBATION ON HA'-T (Cl WAS SERVICE PERFpR MED ON AN ACTIVE FULL-TIME BASIS. I EVEN KEN ORD* KID TO DEPOSIT BAIL ON COLLATERAL FOR THE VIOLA I or ANT LAW. POUCE ROHAATKlM ON ONNANCE (EXCLUDIHC MINOR iD) , DATE OF ENTr/ oM ENTAILS INTO SERVICE I DATE OF SEPARATION OR 4l7WRAT!< m e w h /. ro i* fon winch a hpe or forfeiture of cs on less was Sov. F 1942 1 Fe b, 8 1S46 It yo ur rnawar la "Y ea ,” Hat ell aucb oeaaa i Mr«» Give in ea ch oeaa U) the data, (J) th e •RANCH or SERVICE (Army. odenaa or r iM tlc n natu re of th e Na ry. * SERIAL MO. (i fne ne , di re tr ade or eJ) th e nam e and lo ca tio n of the - ...... *4) th e we na tty im no ee d, if an y, ot eth er i.ip o d l h n caea. It a ppoin te d. your dn^er pr im e tr il l be taken. J1. HATE YOU EVEN BEEN KRCMAAGED. OR FORCED TO KESICN. FOR WISCON- U SERVED IN THE UNITED STATES MILITARY OR NAVAL SERVICE “ a CAMPAIGN OR EXPEDI. ! • oZ em pl oye r. d*.te, *nu teaa on in a fat . SI HAVE YOU EVER MEN BANKED BY THE U. S OVTL SERVICE COMMISSION JD ARE YOU A DISABLED VTTERANT . If ao. and y ou ha re not liat ed j_ . FROM TAKING EXABINATIO-'j OR ACCEPTING OVA. SERVICE APPOINTMENTS’It em . 33. or pla in in It em 39 be low If y ou r anewar fa "Y ea ,” fl ee da tea of an d teeaon e lor «CJ ARE YOUA VETERAN S WIDOW WHO NAS NOT REMARRIED!.______t\. {DI ARE YOU THE WIFE OP A VETERAN WHO HAS A SERVICE-COhKECTED I HAVE YOU ARY PHYSICAL HANCHCA- DISEASE. OR OTHER DISABILITY tMSAMtfTY , W A ASSIGNING YOU TO WORK!.. hich flSQUAIJFIES HIM FOR CIVIL SERVICE /.PPQINTMCNn th a t oonaide rnrion o an ba f i t THIS SPACE FO* USE OF APFCiMTINQ OFFICER OKLT th e job . The mi or ma two contained la

M. re. YOU RECEIVE AH ANNUITY rPCN THE statesUNrrro c i district k anth the disc harp? certificate on . or COLUMMA GOVERNMENT UNDER ANY RETIREMENTr pension ACT ON A OR OTHER COMPENSATOR FON MIUTANY OR NAVAL S<»I*KET..... I If yo ur anatrer fa *'Yaa,“ dita c om ple te d aiaila in ft em W. | M spACE FOR OCT AILED AWSWERS TO OTHER QUEST! Jrqitem (trxrfjfcaf I -^$1'

Write o Before s ij n in i thia ap plication check back ove r it to ma ke aure th at you hav e re red go*kTj^>ir co rrectly , I C B R T IP Y th at the state me nts made by toe In th ia a pp lic ation are true , and belief, an d are ma de in good fa ith. e, »a d c a r f ^ T^rThi bt st of m y know led

Mr. M organ. Tha t is correct, except th at I believe in th at case the papers were not sent to me until after 1 had completed the mission assigned me by the Governm ent. Senator S cott. Well, Mr. Morgan , I am just as aware as yon are of the Pr esiden t’s recent message on conflicts of inte rest, integrity in Governm ent. I am not a bit happy in havin g to ask you these ques­ tion s. I ask you to believe th is. I have been a distric t atto rney when my symp ath y has been with the other side more than once, a nd my symp ath y is with you in thi s instance. I regret very much th at 1 have had to br ing these thing s out. In private convers ations with m embers of the committee e arl ier , members of my side of the aisle here expressed the hope th at all of this could be disposed of and all exp lained in an executive session. I also tak e some risk in th at the fa r from reluctan t dragons of the press will be in full cry against me as usual whe never I feel it neces­ sary to speak out, and assume any of the political risks, as they are called, that accomp any that. So th at I wan t to ask you, have I given you the fu lle st op po rtu nity to exp lain the questions I have asked you? Or if not, is there an y­ thing f ur th er that you wan t to say a bout i t ? Mr. M organ. Th ere is one thing I would like to say in addition to wh at has been sa id alread y. Comment reached me th at some people in the committee------Senator S choeppel . I cou ldn’t h ea r you. W ha t were you say ing, please? A lit tle louder, please. Mr. M organ. The comment has reached me that some people in the comm ittee felt, that something had happened to the files and you you rself, Mr. Scott, ref erred to certain files bein g rou tinely destroy ed by the S tate police. Senator S cott. I was c areful to say “r outinely des troyed” on this statem ent. I have no charg e to the contr ary . Mr. M organ. I would like to tell you th at I was shown some of th e docu ments th at your comm ittee received from the Po rtla nd Pol ice De partm ent which also bear the n ota tion th at they had been removed from the files at one time and wor d had reached me th at it was the feeling of some people in the committee th at in some way I was respon­ sible for this. I would like to tell you what happene d to those files and pe rhap s thi s will throw some light on the bac kground of this case th at you don ’t pre sen tly have. Se nator S cott. G o rig ht ahead. Mr. M organ. After these incidents, a nd the y are the only incidents of their k ind in m y life an d completely out of context w ith every thi ng else in my life before and since, I entered Peed College in Po rtland , which, as you pro bably know, has th e highest scholastic ratin g, o r cer­ tainly one of the ha lf dozen hig hes t scholastic ratin gs, in the Un ited States. It is a great honor to be allowed to enter t ha t college. Afte r I gradua ted, havin g served as studen t body pre sident of the college, I was called one day in 1941, while working in indu str y in Po rtl an d, by Mr. Il arr y Niles, the chief of police of Po rtland , who asked me to come down and tal k to him. I did, and was surpr ise d when he offered me th e job as ad ministrativ e as sis tan t to him . li e had been refer red to me throug h the college which thou gh t there might be a chance I would be inte rested in it, and I was. NOMINATIO N OF HOW ARD MORGAN 65 I considered the matter for a week or so. It was a flattering oppor­ tunity, but I finally told him that I had already had overtures and some correspondence from Mr. Eastman, Joseph Eastman, and the probability was that I would be going to Washington in the not distant future and, in the meantime, I thought I would enter the University of California Graduate School at Berkeley. Mr. Niles then said that he had a record regarding me in the Port­ land police files and that he had investigated the matter and found, in his opinion, that a miscarriage of justice had occurred. lie felt somewhat responsible for it as the head of the police force there, and said that while there was nothing in the files that would prevent me from working for the Government, they might result in some delay and possibly embarrassment to me and that the normal way of having those files expunged from the record would be to go through court procedure and ask that they be withdrawn everywhere that they might appear. I told him I hadn't the funds to do that, and he then said there was another method whereby they could be expunged permanently from the record; that he could do it as the head of the police depart­ ment which originated those records, and asked me if I had any objec­ tion to his doing so. I told him that I did not. I thanked him for it. Two weeks later, or thereabouts, he called me to tell me that he had withdrawn them from his files, from the files of the State police at Salem, and from the FB I files in Washington. He agreed with me that those records were improperly made in the first instance— shouldn't have been made. Senator P astore. N ow, Mr. Morgan, before you go any further, is that man living now ? Mr. Morgan. N o, sir : he is not. Senator P asture. Was this statement ever made by you at a time when he was living ? Mr. Morgan, lie died in 1946,1 Itelieve. Senator P asture. Nineteen what ? Mr. Morgan. 1946 or 1947. Senator P asture. 1946 or 1947 ? Mr. Morgan. Yes, sir. Senator P asture. H ow old were you at this time when you had this conversation with this chief ? Mr. Morgan. Twenty-seven. Senator P asture. Twenty-seven ? Mr. Morgan. Yes, sir. Senator P asture. And that would l>e about 5 years after this inci­ pient ? Mr. Morgan. Yes, sir. Senator P asture. By what period of time are these two charges separated ? I mean, how old were you on the fugitive charge ? Mr. Morgan. Twenty-three. Senator P astore. Or the fugitive incident ? Mr. Morgan. Twenty-three, I believe. Senator P asture. IIow old were you on the assault incident ? Mr. Morgan. That was a few months before that. Senator P asture. T wo months before ? Mr. Morgan. Few months; I would say 6 or 8 months before. 66 NOMIN ATION OF HOW ARD MORGAN

Senator P astore. I think you said to me in my office, to gether with Mr. Alorton, the first time you appeare d th at you inv ited the news­ papers to make a complete expose of this s itu ation ? Air. Morgan. I did , sir. Senator P astore. In Orego n ? Air. AIorgan. 1 did, sir, and I am coming to tha t. Senator P astore. I see, all righ t; I do n’t wa nt to an ticipa te you in any way. I think it will do well fo r the record if you do tell the story of your life since then, because a lot of things have happened to you. You have had positions of trust and I would hope th at you would carry it rig ht down chronologically fo r purpo ses o f the record. Air. AIorgan. Chief Nile s died, as I said, in 1916 or 1947, v ery sud­ denly. I later discovered som ething I am going to pu t in the record now so th at it w ill be unde rsto od, bu t I didn 't discover th is un til years later. When his desk was cleared out these files which he had volun ­ teered to remove from various juris dic tio ns were fou nd in a desk drawer. li e had neglecte d to des troy them , and not kno win g an y­ thing abo ut them his men ret urned them to the files in Po rtland . W ha t was done abou t the oth er two jurisd ict ions I don’t know and I have never inquired. In 1948 I was elected to the leg islatu re, an d while th at leg islatu re was in session in 1949 1 was app roa ched by a man I had never seen befo re o r since and threa ten ed with repris als inv olv ing these records if I did not vote fo r a slot m achine bill th at was on the floor. I didn 't realize at t he time tha t this was my first inkli ng th at these records had been returned to the files. I tol d the newspapers then of the t hr ea t I had received and tol d them of the incident th at had taken place years before and asked them to check on it so t ha t if I sh ould be accused the new spa pers would know abou t it, and they did so, at my request. Senator P astore. Nam e t he new spapers, please. Air. AI organ. The Po rtl an d (O reg .) Jo ur na l and the Po rtl an d Oregonian. In 1952 I became cha irm an of the Dem ocratic Par ty in Orego n, which since the Civil AVar had been a very small, minor pa rty in a one-p arty Sta te. Th ere were ma nv reasons fo r th at and I set about to tr y to cure them . W ha t I did invo lved a houseclean ing and a renovation of my own pa rty and I had help, Dic k Neuberger and oth ers were in on the project. We rec ruited good can didates and we began to win elections, but we m ade b itt er enemies in both pa rties by the methods that we chose. The first evidence of this was in the 1952 election. In 1953, before the 1954 election, wh ile i t was in the ne ar future, an a tte mpt was made to drive me clea r out of politics throug h the use of d ocuments which I the n realized could only have come from police files. I went to the Po rtl an d Polic e De partm ent and checked their files and fou nd that, the y had been returned to the files. How lon g they ha d been the re I did not know. In the fall of 1953 I was told by Bill Tugm an, the edito r of the Eugene Re gis ter Gu ard , th at this card which Se nator Scott has, was being c irculated throug h the mails by the tho usa nds to every respon ­ sible and pro minent person in the Sta te. Air. Tugm an asked me to make a statem ent about it. I wro te him a lette r, include d a copy of NOMINATIO N OF HOW ARD MORGAN 67 the affidavit—that was the occasion for preparing the affidavit—sent it to him and sent it to every other newspaper in the State. In other words, I published it on as widespread a basis as possible. The Oregonian had a story on this matter th at covered a half a page. I continued for 3 more years, 2 more elections, as chairman of the Democratic Party. I was reelected unanimously without opposition. Then I served 2 years as the only one-man public utility commission in the United States, handling all the rate cases, all utilities, all forms of transportation, all without a breath of scandal, or a single breath of reproach to my honesty or integrity. This story is an old story in the State of Oregon. There are men in both parties out there whom I am very proud to claim as my enemies, and they have undoubtedly insisted on the circulation of this story in Washington where it is not an old story. Before I finish testifying about this I want to say one thing lest I have given the impression that I condoned the removal or feeling that it is an excuse tha t these records were removed for a period of years. Merely removing the record does not remove the incident and I do not feel that this justified me in ignoring the matter when I filled out form 57’s. What Chief Niles did was a gesture on his part which I appreciated, but that is not the reason why I did not acknowledge this incident when I filled out the form 57. I did it for the reasons I have told you about before. Senator S cott. But, Mr. Morgan, when you did fill out these three forms and deny that you had ever been arrested you were at that time under the impression, were you not, that these things had been re­ moved from the record by a police chief and therefore they could not be discovered and brought up against you, isn’t that true, factually, even though you say that wasn’t your motivation? Mr. M organ. Y ou can say that, yes, sir. But that was not the motivation. Senator Scott. May I ask you one other question ? Mr. Morgan. Yes, sir. Senator Scott. And that, is do you feel th at what you did repre­ sented some deviation from let us say irreproachable standards of be­ havior? Mr. M organ. I think tha t I can be and probably should be repri­ manded or admonished for an infraction of the rules. There is no question about it. But I have served as a decisionmaking official and handed out punishment for violation of rules to businessmen and I think they and I or anyone else who violates a rule is entitled to rea­ sonableness in viewing what was done, by what sort of person it was done, by how much the public interest was damaged, if at all. I think tha t in this case while what I did was something I cannot de­ fend as absolutely right, it was not seriously damaging to anyone and I would not have done it if it had been. Senator S cott. The Senate Committee on Post Office and Civil Service in July 1958 in another matter refused to recommend favor­ ably, as I recall it, the nominee because the statement was made by him in the form 57 that he had a college degree, where as, in fact, he had the necessary college credits and did, in fact, have a law degree; he claimed two degrees. That was one degree too much in the opinion of the committee and they refused to recommend him for confirmation. 68 NOMINATIO N OF HOWARD MORGAN

Mr. Ch airman. T will close my que stio ning by read ing from the message from the P res ide nt on yesterd ay or — — Mr. Morgan. Mr. Scott, may I at thi s po int—I am sorry to inter­ ru pt you. Se nator S cott. Tha t is all rig ht, go ahead. Mr. Morgan. I think it is o nly fa ir to you to tell you th at because mention was made within the comm ittee of thi s Fla nagan case. I have re ad the Fl an ag an trans crip t and th e cases are not parallel. Mr. Fl an ag an conferred 47 un its of study on him self and a unive rsity degree which he did not, in fac t, have. He didn 't hav e a law degree eith er. He had been thrown out of law school fo r bad scholarship, and the falsifications which he made in his form 57, fa r from bein g related only to a possible short delay, were crucial, absolutely crucial, to his successful appointme nt to the position he sought. Se nator Scott. I understand. You may be r ight on the law degree. I had th at impression from rea din g it, bu t Mr. Fl an ag an also sta ted at the time th at he filed a sep ara te or later form in which I assume fro m his testimony he corrected some of these statem ents which were in controversy . Bu t I would lik e to conclude by asking th e witness if he agrees with the s tatement in the message from the Pr esiden t of April 27 on con­ flict of interest which re ads in its conclusion : Ultimately, high ethical standards can be maintain ed only if the leaders of Government provide a personal example of dedication to the public service— and exercise their leadership to develop in all Government employees an in­ creasing sensitivity to the ethical and moral conditions imposed by public service. And later o n : No Presid ent can excuse or pardon the slightest deviation from irreproachable standards of behavior on the pa rt of any member of the executive branch. Do you think th at is a f ai r state ment of the s tand ards which should govern us? Mr. Morgan. I do, sir. Senator S cott. Tha t is all I have, Mr. Chairma n. Senator P astore. Mr. Schoeppel? Se nator Schoeppel. Mr. Morgan, aprop os to what Senator Scott has said about certain new spa per articles ap pe aring at least in their own way ind ica tin g the connections which Senators might have who are on committees, I do appre cia te your expla nation as to how pos­ sibly some of th at inform ation got into th at typ e of a columnist's app roach. I wa nt to assure you so fa r as th is Se nator from Ka nsas is con­ cerned th at doesn't make the slightes t difference to me. The thing I am concerned about is when inform ation is bro ught to some of us, and in our instance here we like to think responsible members of the com mittee, abou t certain matter s th at oug ht to be looked into, tha t when we look into them and when we call for the files and we find these thing s th at we have been he aring this aftern oon and you are testify ing to, and some of your positions th at you take are laudab le in my books, some 1 would question wh eth er I would hand le them t ha t way or not, although I am not casti ng any aspersions at you or an y­ body else at this moment. NO MINATIO N OF HOW ARD MORGAN 69 But there is a duty that devolves upon us to clean up this record. Some of us definitely thought that, and I for one, I care not who might know it, suggested that it be handled in an executive session of the committee. Some executive sessions of the committee are public sessions of the committee, apparently. It wouldn’t be so bad if the facts or the truth that actually happened would get out. Some­ times they do not. Hence one of the reasons why, and I will say to you, sir, I think it is commendable when you wrote the chairman of this committee suggesting tha t either at an executive session or a public session, leaving it to his discretion, the discretion of the com­ mittee, I think was very splendid of you. But there were certain things th at were brought out here, and these form 57’s and with the Civil Service Commission, predicating or in a position to predicate actions for punishment on violations or on erroneous or shall I say false answers given to some of these, presents to some of us on this committee a situation which we felt ought to be cleared up. I hope you will take it in tha t spirit when we move into these, giving you as well as the committee an opportunity to explain why some of these answers were given not only once, not only twice, not only three times, but on the fourth time on an affidavit that you made saying tha t the answers which you gave were true and correct, so I assume that you had all of these facts before you. But you have given your reasons fo r your explanations for them. I would like to ask you one other question. Mr. Morgan. May I interrupt just one moment ? Senator Schoeppel. Surely, sir. Mr. Morgan. I want to make it very clear tha t while I cannot recall with accuracy what my feelings may have been about the so-called assault case, I think it is extremely probable tha t I did not remember tha t on any of those occasions. I don’t make that as a claim because I cannot remember with precision. My memory is good enough so tha t I know when I remember and I know when I don’t, and in this case I do not remember. But I think the probability is that I had forgotten it. Certainly that was the case a few weeks ago when T made every effort to think of everything the President ought to know before allowing my nomination to go forward. The m atter which I have chosen to ignore is the other matter and I agree with you, it has put me under heavy obligation, both to explain my reasons for so doing and also to conduct my life and my affairs in such manner as to justify the liberties I have taken, and this, sir, I have done. Senator Schoeppel. Mr. Morgan, if you are confirmed in this re­ sponsible position you probably will have, or those in the appointive power and position, you may have it if you are designated and con­ firmed in this responsible position, the opportunity and the right to pass on what applicant for jobs or applicants for positions put in their form 57’s. Row do you think you could react to it if you should later find out that they answered questions “No,” when the facts were ‘“Yes,’" and later brought out ? I)o you think that would prove embarrassing to you in any way if you are confirmed in this position? 70 NOMIN ATION OF HOWARD MORGAN

Mr. M organ. I don’t t hink so, sir. I would say this , th at if a p erson of disho nest record and dish onest habits and a dishon est past were to conceal those facts and by such concealm ent were to secure a Go vernment job in which he c ontinued to behave dish one stly , I would show him no mercy, absolutely none. But if, on the oth er han d, an inform er were to come to me and tell me t ha t a tru ste d employee who h ad worked in an agency fo r 10 years sho uld be fired because he had fai led to note on his form 57 th at he once had been arr ested for murder and the n was released because it was fou nd th at the mu rde r charge was to tally witho ut fou ndation, I would tell th at employee to forget it. An d I would tell the informe r nev er to bothe r me again. I think there are sta nd ards of reasonableness to handle rule vio la­ tions of that kind and I think th at those sta nd ards of reasonableness should be followed. Senator S choeppel . Mr. Morgan, there has been some refe rence made here, an d I think it ’s comm endable, perfe ctly proper, th at you consulted some of the S ena tors in expla ining or d iscussing y ou r situ a­ tion with them . You will recall th at you came to m y office and you were welcome at m y office, and th at two responsib le ind ividuals asked fo r you to see me. The y di dn ’t rea lly h ave to do th at ; you could have done t hat yours elf, but you did come up th ere, and I asked you a n um ­ ber of questions. Fr an kly, I wou ld have felt better, I ’m ju st being honest with you th is afternoon, this heari ng, if you had given me some ind ication of these thing s here, which I assure you I did not know. Mr. M organ. I did not know the y were going to come u p, sir. Senator S choeppel . Th an k you, sir. Senator P asture. Senator Morton , do you care to ask any quest ions ? Se nator M orton. N o, sir. Se nator P astore. Mr. Monroney ? Senator M onroney . N o, sir. Senator P astore. Mr. Yarboro ugh? Senator Y arborough. N o, sir. Senator P astore. Mr. Engle ? Senator E ngle. I think not. Senator P astore. Mr. Bar tlet t ? Senator B artlett. Ju st a couple, Mr. C hai rman. How d id gasoline and oil g et i nto th at one charge? Mr. M organ. I have no knowledge of t hat whatever, sir. Senator B artlett. Mr. Mo rgan, I wan t to ref er to som ething th at has been called to my att entio n in the last 24 hours, no t by you—it may have been covered w hile I was absent from the room. It has n o beari ng on this matter, in my opinion, except in one wav. Is it true th at one time you risked yo ur life to save a child in Oregon ? Mr. M organ. Yes, sir. Senator P astore. Say th at again, I did n't get that now. Senator B artlett. I asked Mr. Mo rgan is it tru e th at on one occa­ sion he risked h is life to save a child in Oregon, and I asked him, he said, “ Yes,” and T asked h im to expla in the circum stances. Senator P astore. G o ahead, M r. M organ. Mr. M organ. Well, I should sav af te r my hasty a nsw er t ha t I don’t rea lly believe the re was much ris k to m y life. I was once a competi- NO MINA TIO N OF HOW ARD MORGAN 71 five swimmer and even when I ’m not in good shape I’m still a good swimmer. This child had fallen into a deep lake behind Reed College while riding a bicycle. He had catapulted from the bicycle into the lake. One of his friends ran and summoned me. He had already been on the bottom of the lake for something over 5 minutes. It was a very deep lake and a very dark lake, and one couldn’t see below the surface. After I had dived and groped for him until I was completely ex­ hausted and knew tha t I had to get out of the water and rest, that I simply couldn’t dive again, just as I was giving up and pushing off from the bottom my hand closed over his hand and I was able to bring him to surface and to shore. Senator B artlett. Mr. Morgan, the person who told me about this didn’t give me any of the particulars which you have just related but said, this is the part I ’m curious about particularly because the episode itself, although it does credit to you and has nothing to do with your capacity to serve in this position, mentioned that this was incorporated in a police record. How did that come to pass ? Mr. Morgan. Yes, and now I think I know what you are talking about, Senator. The child was so nearly dead tha t the inhalator squad from the police department had to be summoned and it took, oh, half an hour of effort on the part of the squad to revive the child. A report of this incident was included in the police files. When I was elected to the legislature a friend of mine with whom I had played football, who worked in the Portland Police Department, called me one day to tell me tha t the—well, I would say some political operators—had been in the police station all afternoon looking for information damaging to me and that they had stolen from the files the account of my rescuing the child and destroyed it because it was creditable to me. Is that what you were told, sir ? Senator B artlett. Was that record irrevocably destroyed, do you know, or was any account of it later restated and placed in the files ? Mr. Morgan. I hadn’t even known it was in the files, but the person who told me about it knew enough details to convince me that such a record had been in the files. lie had no way of knowing about the incident except through such a record. I have not heard about a record of that kind since and I assume that it’s irrevocably destroyed: yes, sir. They play politics rough in Oregon, just like everywhere else. Senator B artlett. N o further questions, Mr. Chairman. The C hairman (presiding). I don’t know who hasn’t asked ques­ tions, but the Senator from Kansas has a question. Senator S choeppel. Mr. Morgan, two final questions for the benefit of the record. I would like to ask you did you fill out any form or forms 57 after the story of the larceny matter or charge was printed in the Oregon newspapers and after you knew th at the files were back in place ? Mr. Morgan. N o, sir: and I would like to say at this point tha t on every occasion on which I have filled out a form 57 it was because I was asked by some agency of the U.S. Government to take a position with that agency. I never have gone to the U.S. Government seeking 72 NOMIN ATION OF HOW ARD MORGAN

a job. An d this possibly might have had som ething to do with my attit ud e abou t not wa nti ng to get wound up in an ind ete rm ina te amount of red tape in ge tting o nto a job and ge tting it done af te r the Government had asked me to tak e on a specific assignment. Now, there ’s one sli gh t exception to th at, and th at is the census job th at 1 was asked to take in 1949. I was talk ed int o taki ng t hat job by an official of the Dem ocratic Par ty who was desperate at ha v­ ing to fill it with a com petent person and ha d a terrific numb er of people on his hands all squabb ling fo r the job, and he persua ded me to tak e the thing pa rtl y in ord er to rescue him. 1 believe it was for the direction of the entire State census, altho ug h it may have been fo r ha lf the Sta te, I can't remember. I took the job and wen t to Seattle for 3 days of ind oct rination an d it was such un im po rta nt and dea dly dull work th at I simply cou ldn ’t sta nd it; I called up my fri en d and told him he certain ly could find somebody to do a job like that, a nd quit. Tha t is the only time th at I hav e nev er acce pted a position with the U.S. Governm ent except at the request of a Government agency, and on no occasion since 1953 until the prese nt has the Un ited States, any agency of the Government asked me to do an ything fo r the Governm ent. Senator S ciioeppel . Fo r the benefit of this reco rd, since you testi­ fied to it, in orde r th at we might have it into the reco rd as to the dates, can you supply for the record here, I do n’t ask you to do it if you don ’t recall it r ig ht now, t he da tes when your sto ry was told in th e Oregon p apers? If you know it now we m ight get it into the re co rd ; if not, I would like to have t hat supplied fo r the record. In fairne ss to you r----- Mr. M organ. I can give you the approx im ate date within a very few days, sir, in just a moment. Senator S ciioeppel . T hat ’s all the questions I have, Mr. Chairma n. The C hairma n . Air. Morgan, I wasn't here f or the ori gin al meetin g but I presum e th at the mem bers of the committee did ask you some questions abo ut the Fe deral Powe r Commission policy and so on, and so forth . The y may lie repetitious, but the Federal Pow er Commission at the instance of t his committee or at the re com mendation o f this committee has sent to the Congress certa in legislative recommendations. The y are quite a few in num ber, some th at deal with the Gas Act—several dea ling with the Gas Act, some 15 in num ber, and then abou t 5 dea ling with the F edera l Powe r A ct. and the n 1 dealing with th e dele­ gation o f Com mission fun ctions und er both acts. Are you famili ar at all with those recommendations or have you not yet looked at them ? Mr. M organ. I read them all las t Ja nu ar y. Senator, and not since then. I ’m a fraid I can't say at this moment I am familiar with them . The C hairm an . The committee was hopeful that we could get at these m atters as soon as possible because so m any of them relate to the real problem th at always c on fro nts us up here, the admi nistr ation of these indepe ndent agencies as to some seem ingly lack of efficiency and reg ula tor y lag in ge tting at the cases, and in the Fe deral Powe r Com­ mission in pa rticul ar because of the trem end ous backlog o f gas cases. I wanted to ask you if you are fam ili ar w ith that backlog , it has been NO MINATIO N OF HOW ARD MORGAN 73 point ed out by th is committee on many occasions and then high lig hted again by Ju dg e Landis in his rep ort to the Pre sident. If you have any opinions as to how th at backlog can be gotten at or how we can get these cases decided and wheth er or no t these legis­ lative recommen dations will do th at, th at if you are appointed to the Fe de ral Powe r Commission you would n’t hes itate to sug gest to this com mittee w hat further might be done to do this job. Mr. M organ. T hat’s correc t, sir. The C hairm an . Also, the re can l>e a lo t done in th e Commission reg ­ ula tio ns themselves, and to exp edite these cases and get at them , and I ’m hopeful that you will answer “ Yes” to the fact t hat y ou will take a lon g look at t ha t because you have had some experience in regula tor y bodies. Mr. M organ. Yes, sir. Th e C hairm an . Y ou are going to lie dealing, however, with some other Com missioners while in the St ate of Oregon you were the only commissioner. I t ’s a little different out there. You could issue an orde r and see t ha t it w as carri ed out. He re you have to deal with oth er min ds, other ideas. Se nator Y arborough. Mr. Ch air ma n, may I ask a question here ? Th e C hairm an . Yes. Se nator Y arborough. Mr. Mo rgan, when you were appointed by the Gover nor as public service commissioner, were you confirmed by the Sen ate of the State of Oregon ? Mr. M organ. N o, s ir ; the re are a few positions in Oregon th at re­ quire confirmation by the S tate senate b ut tha t is not one of them. The C hair man . I think leavin g out the decision and policy m atters , one of the biggest jobs you have down the re, you and Mr. Swidler, if you are confirm ed down there, is to expedite these cases. Mr. M organ. Yes, I he artily agree. The C hairm an . I wa nt to ask you anothe r question, and this is by an old fro ntiersman and not a new one. If th e budget doesn’t give you enough money to do this job, would you have any hesitan cy in tellin g the Senate App ropriatio ns Com mittee on Inde pe nd en t Agen cies th at in order to do some of these things tha t sho uld be done in the intere st of the public, you need a little extra money? Mr. M organ. Well, sir, I do n't believe in spendin g public money loosely or extra vaga ntly. Th e C hairman . Ne ith er do we. Mr. M organ. Bu t I think money spent for th at purpose is about as well spent as any money th at the Gover nment can put into use right now. The C hairman . Those are all the questions th at I have. Do you have an ything else th at you wa nt to pu t in the reco rd oth er th an what has been p ut in the record? Mr. M organ. N o, s ir; the date th at Se nator Schoeppel was inqu ir­ ing about was Novem ber 10,1953. Senator S choeppel . Th an k you. Mr. M organ. I would like, with your perm ission, Mr. Ch airma n, to pu t in the record a list o f positions I h ave held since these incide nts occurred th at we have been talking about here tod ay, which involved elem ents of public tru st. I have held other positions, of course, in ­ volving p riv ate res ponsibility , and so on, b ut this is a list of positions 74 NOMIN ATION OF HOWARD MORGAN that I have held covering I would say 23 of the 25 years since 1936 tha t involve elements, sometimes very heavy elements, of public trust and I would like to list those with the committee.

P ositions of T rust H eld by H oward M organ, 1938-61 1938- 39: Elected member student council, Reed College. 1939- 40: Elected president of the student body, Reed College. 1941— 42: Appointed staff member under the late Joseph Eastman , Chairman of Interst ate Commerce Commission and Chief of the Office of Defense Transportation, Washington, D.C. 1942- 46: Commissioned officer U.S. naval forces, occupying responsible and sensi­ tive positions in Washington, D.C., the South Atlantic, and South Pacific. 1947: Elected chairman, Portlan d Area Council, American Veteran’s Com­ mittee. 1948: Elected chairman, Young Democrats of Multnomah County. 1949-51: Elected member of the Oregon Legislature. 1947-53: Appointed transp ort consultant, Oregon S tate Grange. 1951- 52: Elected member, executive board. Oregon Farm ers Union. 1952- 53: Appointed by Commissioner James K. Knudson (ICC) to be tra nsport consultant, Defense Transpo rt Adm inistration, U.S. Government. 1952-56: Elected chairm an, Democratic Pa rty of Oregon. 1956: Selected by Adlai E. Stevenson as a staff member, National Stevenson- for-President campaign. 1957-59: Appointed by Gov. Robert D. Holmes to be public utility commissioner, State of Oregon. 1961: Nominated by President Kennedy to be a member of the Federal Power Commission.

The Chairman. And further, I want to suggest to you that you do not go away from this stand with any conception that this committee, because of the matters being discussed here today or any other matters of policy, did not expedite this nomination. We have lots of work up here, we have lots of nominations, and we have to prepare for many of them, and I think that the testimony in this case has gone through just about as fast as any I have seen up here in many, many years. Mr. Morgan. I would like to say, Mr. Chairman, just one thing in conclusion, and it repeats slightly what I said before, tha t I quite understand that my attitude toward this misadventure of many years ago has led me to make reports to the Federal Government which are very hard to defend and I am willing to be admonished and repri­ manded for having done so. I am not willing, however, to accept the statement or the theory that such an episode renders me incapable and ineligible to hold positions of public trust because I have been holding such positions steadily almost ever since then. The C hairman. If there are no further questions, thank you, Mr. Morgan. (The following letters were subsequently received for the record:) Reed C ollege, Por tla nd , Oreg., April 30, 1961. lion. W arren G. Magnuson, V. S. Se na te, W as hi ng to n, D.C. Dear S enator M agnuson : In view of the impending reopening of hearings about the confirmation of Howard Morgan to the FPC, I wish to convey to you my conviction about the high moral cha racter and principles of Mr. Morgan. As one who has known him since his studen t days at Reed College I regard him as one of the most honest, reliable, and public-spirited men I have come across. NO MINATIO N OF HOW ARD MORGAN 75

I vividly recall an incident, when Morgan saved the life of a young boy at the risk of his own life by jumping after him when the boy fell into a body of water on the college campus. Like most of my fellow Oregonians, I heartily endorse Mr. Morgan’s nomina­ tion and hope he will be confirmed without undue delay. Very truly, Frank Munk, Professor of Political Science. House of R epresentatives, Wa shington, D.C., Ap ril 28, 1961. The President, The White House, Washington, D.C. Dear Mr. President : I have noted in the press developments concerning Howard Morgan, of Oregon, your nominee for the Federal Power Commission, who is being considered by the Senate for confirmation. I do not know Mr. Morgan, but I am alarmed at the implications of this nomination, if press reports are accu rate. The issue is not public versus private power. It is not Morgan’s alleged youthful indiscretions. The issue is simply th is : Do we have two classes of citizens in the United States? Pos tal workers in my district have been discharged for identical omissions on a form 57. Yet here we have a man who, on three separate occasions falsi­ fied his application to work for the Government. Under your nomination, if approved, he would assume high and responsible public trus t and office. In view of your message to Congress yesterda y setting forth commendably high standard s for ethics in Government service, I urge you to reconsider the nomination of Mr. Morgan. If you decide to continue to request Senate con­ firmation of Mr. Morgan, may we assum e th at all former Government em­ ployees and applicants for Federal service who have been denied employment on grounds similar to Mr. Morgan’s case will be given a review and reinstate­ ment? Sincerely yours, Bob Wilson, Member of Congress. (The following material was ordered by the committee to be printed with the hearings of May 2, 1961:) Memorandum To: S enator W arren G. Magnuson. From : Harold I. Baynton. D at e: May 9,1961. R e: 1958 Flanagan case (Form 57). Flanagan made numerous claims, all false on various Government forms in estab lishing his qualifications for positions he had applied for in the Federal service. For example, he claimed a degree from Norwich College, and later claimed he had enough credits for a degree though not the degree itself. A degree from Norwich requires 120 credits; Flanagan had 73 (tra nsc ript, pp. 29-33). Flanagan reported 3 yea rs’ atte ndance at Columbus University, whereas he had actually completed two qua rters of 1 yea r (transcr ipt, pp. 34-35). In ex­ plaining. this Flanag an said he had included time spent at George Washington University but had not indicated it specifically, or the fac t th at he had been dropped from George Washington University for poor scholarship (transcr ipt, p.3 5). Flanagan had actually spent a tota l of 52 semester hours at Columbus and George Washington University, many of them not creditable because of poor scholarship. He claimed 75 semester hours, all fully creditable (trans cript, p. 40). On another occasion Flanagan claimed a degree from Columbus U niversity Law School with 90 semester hours of study (transcript, p 45). On still another occasion he claimed he had completed the necessary work for a degree from Norwich College and had petitioned the college for a degree, issuance of which was pending. The presiden t of Norwich denied all of this in a signed l etter (transcript, pp. 47-48). 76 NOMINATIO N OF HOW ARD MORGAN

Spec ial I nforma tion S ervice of D un & B radstreet , I nc. (Th is report consists of 6 pages on Morgan, Howard Vincent, Sisters, Oreg.) M ay 2,1961 SUM MARY This investigation has developed no information to reflect unfavorably ui>on the cha racter and reputation of Morgan. A wide search of police records has produced no information con trary to that which has alre ady been known. Morgan’s political and civil activities have involved him in conflict with those holding different views from his own, but there has been no criticism of his cha r­ acte r or integrity by those who have been in opposition to his political views or decisions made while in positions of public tr ust

SCOPE OF INVEST IGA TION Your request for a report on Howard Morgan thro ugh the Special Information Service asked for a check of police records at four locations, and placed emphasis on investigation into cha racter and reputation. Our investigation has included search of police records at various locations in fou r counties; interviews with five individuals who have known Morgan through varied contacts at different points in his c ar ee r; and a search of the “morgue” of a leading Oregon newspaper. While the emphasis has been placed upon cha racter and the police check, additional background information is presented as an aid to clarity and con­ tinuity, even though it is felt you alre ady have this inform ation.

PERSONAL HISTORY AND BACKGROUND Howard Vincent Morgan was born at Tillamook, Oreg., January 22, 1914. He moved to Portlan d at an early age, grew up and attended school in Portland and spent his early working experience in Portland. He attended and graduated from Jefferson High School in Portlan d and then attended the University of Oregon at Eugene for 1 year. He then obtained the remainder of his college education at Reed College in Portland, graduating in 1940 with a bachelor's degree in economics. While at Reed, he served as president of the student body. During 1940 he was married to Rosina Corbett, daughter of Henry L. Corbett. The Corbetts are a prominent pioneer family in Portland and represen t substan­ tia l means through various investments and holdings, some of which are repre­ sented by the Corbett Investment Co., Inc., a real estate holding and investment company which owns, among other investments, the Corbett Building, a large downtown office building. From 1940 to 1942, Morgan was employed as ass istant to Joseph Eastman. Chairman of the Inter sta te Commerce Commission and Chief of the Office of Defense Transporta tion. From 1942 to 1946, he served as an officer in the U.S. Navy in various locations, active chiefly in transportation work. During 1940—48 was engaged in buying and selling war surplus and construction and ind ustrial machinery in association with Jack R. Eatch, in Portland. In 1948, he was elected to the Oregon State Legislature from Multnomah County. About 1948, or 1949. exact date not known, he acquired a ranch nea r Mon­ mouth, Oreg., and continued to devote at least a part of his attentio n to the operation of th at venture until about a year or two ago, interrupted by his service as Oregon public utilitie s commissioner and various other activities. He was appointed as public utilities commissioner in January 1957 by Gov. Robert Holmes and served until subm itting his resignation effective Janu ary 12, 1959, upon the inauguration of a new State adm inistration. After leaving that post, devoted atte ntion to the operation of his ranch near Sisers, Oreg.

POLITICA L ACTIVITIE S Morgan has had an active interest in politics since his college days and during 1947 (an d possibly before and af te r) was active as an officer in the Young Demo­ cratic organization in Multnomah County. In July 1947, he was elected chairman of the Multnomah County chapter of the American Veterans Committee. He wag a successful candidate to the State house of representatives from Multnomah County in 1948. NOMINA TIO N OF HOW ARD MORGAN 77 From February 1952 to July 1956 he served as State chairman of the Demo­ cra tic Party. He resigned from that position to serve on the Stevenson-for- President Committee, this being a full-time appointment to the national cam­ paign staff and involved considerable travel. With the inauguration of the Holmes adm inistration in Janu ary 1957 Morgan was appointed State public utili ties commissioner as previously outlined.

BU SINES S ACTIVITIE S While attending college, Morgan was employed from time to time by Jack R. Eatch, who was engaged in various contracting activities. It was during this time that both the “stolen tir e” and “fist fight” episodes which are outlined later in this report, took place. Following his release from naval service he was en­ gaged in business as outlined in the background information, and association with Jac k Eatch. The exac t nature of their financial and business arrangement has not been learned. The ranch which Morgan purchased in Polk County is of several hundred acres and said to have been engaged primarily in the raising of sheep. The amount of investment in. this venture and the method of financing its purchase and develop­ ment were not learned during the c urren t investigation. About a year ago, th ere were some negotiations for the sale of the ranch by Morgan, but it was not learned whether the transaction was consummated. This venture was actively operated by Morgan un til his appointment a s public u tilities commissioner. In Janu ary 1957, Howard and Rosina Morgan purchased the Black Butte Ranch, a 577-acre stock ranch near Sisters, Oreg., from the estate of Stew art S. Lowery. The price indicated by the revenue stamps was $81,000. At the time of the purchase, the ranch was not stocked and according to a quote by Morgan at the time, the family then living on the ranch would continue there. According to Morgan, the ranch was to be used in conjunction with the ir present acreage 6 miles southwest of Monmouth where they were engaged in raising sheep. With the exception of his time spent in civil and political activities, Morgan has devoted his atte ntion to development and operation of the Black Butte Ranch. Outside sources consulted have expressed the opinion th at an excellent buy was made by the Morgans in obtaining this property and th at the present value would be well in excess of the original purchase price, not including the cattle herd which is now maintained. It is noted here that the Corbett family has for many years owned a property located nearby and that Mrs. Rosina Morgan is well acquainted in this area and had been very fam iliar with the Black Butte property. In this investigation no attem pt was made to develop detailed information concerning the net worth and financial condition of th e subject.

POLICE RECORD SEARCH Police records were checked in Deschutes. Marion, Polk, and Wasco Counties. Deschutes County courthouse records were checked for any police record or court action involving Howard Morgan. Check was also made with the Bend city police, Deschutes County sheriff’s office, and the Bend office of the Oregon State Police. There was no record of any criminal or civil actions involving Howard Morgan. Marion County : Salem city police records were checked but disclosed no record of any civil or crim inal actions with the exception of traffic violations. A request for search of the records of the Oregon State Police was denied. However, according to an aut horitative source in the office of the State police, a previous similar check made by the Federal Bureau of Investigation had produced no derogatory information concerning Morgan. Polk County investigation included a check with the Dallas city police and the Polk County sheriff’s office. There was no record. Wasco Co unty: A check with the Wasco County sheriff’s office and The Dalles city police disclosed no record. In past yOars, the stolen-tire episode has received considerable newspaper publicity as has recently the story concerning the fight in which Morgan was engaged while in college and for which he was fined. A complete story on the alleged tire theft was contained in the Oregonian, Portland, Oreg., November 12, 1953. Morgan was arrested in Portla nd in 1937 for questioning about theft of a tire from a Maupin. Oreg., service station. This involved a tire which had been given to Morgan by his employer, Jac k R. Eatch, as p art payment for back wages. 78 NO MINATIO N OF HOW ARD MORGAN

Eatch subsequently signed an affidavit relieving Morgan of any responsibility and explaining the circumstances. There was no complaint filed against Morgan nor any court action. While a check with the Wasco County sheriff’s office disclosed no record of any arrest or convictions, according to newspaper publicity, Morgan was fined $25 for his participation in an altercation that occurred during Morgan’s summer employment while attending college. Morgan’s employer at th at time was also Jac k R. Eatch and the newspaper accounts have been substan tiated by outside sources with firsthand knowledge of the circumstances. Through a number of interviews with principals who have been acquainted with Morgan in a wide range of circumstances, none stated having any knowl­ edge of criminal or civil actions in which Morgan had been involved other tha n the two aforementioned situations. During the investigation it was learned th at th e Fed eral Bureau of Investiga­ tion had conducted a similar check early this yea r bu t no information has been made available from that quarter.

NE WSPAP ER SEARCH A detailed check was made of the back newspaper files of the Oregonian, Portland, with articles concerning Morgan dating to 1947. There was no indic a­ tion of criminal or civil actions other tha n traffic violations and the two situa­ tions previously mentioned.

CHARACTER AN D REPUTATIO N Interviews were held with five individuals who have been acqu ainted with Morgan on the basis of business relationship, political activity, personal frie nd­ ship, and through public life. (1) A personal friend who has known Morgan through a close personal rel a­ tionship for many years spoke very highly of the subject. He described Morgan as being of complete and absolute honesty. This qua lity was said to have been demonstrated in numerous business and personal relationships. (2) A reference who has known Morgan through political association for about 10 years described the subject’s character and reputation as excellent. He is said to have demonstrated the highest inte grity in all circumstances. This source is presently a deputy dis tric t atto rney for Multnomah County, Oreg. (3) A source who has known Morgan since about 1951 through business and social contact, described his cha racter and reputation as excellent. The source is a businessman at Monmouth, Oreg. and has had some business dealings with Morgan and social contact through joint membership in the American Legion post at tha t point. Source knew of no unfavorable or derogatory information of any kind. (4) A source who occupies a prom inent position with a newspaper of the op­ posite political view to th at of Morgan reports having known the subject on a public contact basis fo r some years. Morgan was described as a strong partisa n but there was no question indicated as to his integrity. Source stated he knew of nothing unfavorable in Morgan’s background and indications are th at such information would have come to his atte ntion if such were available. (5) A bank official who has known Morgan for some years and with whom Morgan has had business dealings expressed a high regard for his character and reputation. This source had no knowledge of any derogatory inform ation. All business dealings reported handled in a satisfa ctory manner. In the course of his political activities and during his service as public utilities commissioner, Morgan has been subject to public disagreement on various mat­ ters of partis an politics and Government policy. In March 1957, he testified before the Senate Select Committee on Racketeering in Management or Labor in the course of th at committee’s investigations. May S, 1961 The following information is forwarded to you to supplement the da ta con­ tained in th e report of May 2,1961.

POLIC E CTIECK, M UL TN OM AH COUNTY On a check with the Criminal Investigation Bureau, Multnomah County, there was no record for Howard Vincent Morgan. The b ureau’s records d ate to 1928 and include all felony charges and most misdemeanors. NO MINATIO N OF HOW ARD MORGAN 79

B U SIN E SS INTE RE ST Howard Morgan holds the office of secretary-tre asu rer of Pioneer Construc­ tion Co., Inc. The other officers a re Jack It. Eatch, president; Lena Eatch, vice president; and the directors are composed of the officers and Alfred Corbett. Howard Morgan and his brother-in-law, Alfred Corbett, jointly hold one-third of the outstanding cap ital stock of Pioneer Construction. Morgan and Corbett are reported to have acquired the ir inte rests in the company March 1, 1960, but the amount of money they invested h as not been disclosed. Pioneer Construction Co. is an Oregon corporation cha rtered December 9, 1959, with authorized capital stock of $50,000 comprised of no pa r value com­ mon stock. Corporation is engaged in rock-crushing work and as a demolition contracto r. Hea dqu arte rs are at Portland, Oreg. Morgan is said to have never been active in the operation s of the company other tha n in an advisory capacity. May 5, 1961 POLICE CH EC K, CITY OF PORT LAND On May 5,1 961, the superinten dent of the identification bureau of the Portlan d Police Department was contacted and was asked whether there is at present any record on file for Howard Vincent Morgan. He said th at the record files were closed to any civil agency and said th at he could neither confirm nor deny whether there is a record on file.

CLARIFICATION OF B U SI N ESS INTE RE ST On May 4, 1961, Mrs. Ruth Eatch, of Pioneer Construction Co., called and requested th at we contact the ir attorney, Pa t Dooley, to secure more complete details concerning Howard Morgan’s interest in Pioneer Construction Co. This was done, and on May 5 Dooley reported th at the original authorized cap ital of Pioneer Construction was $50,000, increased shortly there after to $75,000. This additional $25,000 of authorized cap ital was said to have been subscribed in the name of Alfred Corbett and Howard Morgan but according to Dooley, no stock has ever been issued to eith er of them, although the stock has been paid for. The only stock of this corporation which is reported to have been issued was issued to the late Mrs. Lena Eatch, the mother of Jac k Eatch. While Howard did at one time hold the office of sec retary-tre asu rer of th at corporation, it was stated he no longer holds th at office and has not been active in the company.

Minor ity S taff M emorandum re O ff ic ia l P ers onnel F older of H oward Morgan To: Senator Andrew F. Schoeppel. From: John M. McElroy, Assistant Chief Counsel. Through the Office of Records Management of Archives, the committee ob­ tained the official personnel folder covering Federal employment of Howard Vincent Morgan. A close exam ination of the folder reveals a number of docu­ ments related to testim ony given by Mr. Morgan during his hearing as a nominee to the Federal Power Commission. During his testimony, Mr. Morgan stated th at he had never been arreste d, or summoned into court as a defendant, on three forms 57, in appointment affidavit form 8-7003, and in his application for commission in the Navy. In addition, the file indicates like s tatemen ts on the following documents: 1. “Application for Employment Under Civil Service Rules” filed Janu ary 28, 1942, with the Board of Investigation and Research under the Transporta tion Act of 1940. Dupont Circle Building, Washington, D.C. The specific question asked and the answer are as follows: “Have you ever been arre sted , or fined, or convicted of any offense other than minor traffic violation? If so, give details here: ‘No.’” 2. Under date of March 8, 1942. Mr. Morgan executed an “Application and Personal History Statement” on form No. OEM-2 which he filed with the Office for Emergency Management Personnel Office, Washington, D.C. Question 24 on the form read s “Have you ever been arreste d, indicted, or convicted for any violation of law other than a minor traffic violation?” Mr. Morgan marked an 80 NOMINATIO N OF HOW ARD MORGAN

“X” in the box following the word “No.” The text in the same block co ntinued: “If ‘Yes’ sta te name of court, nature of offense, and disposition of your case.” Mr. Morgan testified th at shortly after his graduation by Reed College, Chief Harry Niles of the Portlan d police notified Morgan th at the chief had removed all references to Morgan from the Portlan d Police Departm ent files, and had withdrawn his file from the FBI and from the Oregon State Police. He also said that while he was a member of the Oregon Sta te Legislature he was ap­ proached by someone he did not know who sought to use information from the police file as a means of pressuring Morgan to support a slot machine bill. Mr. Morgan testified th at Police Chief Ha rry Niles had kept the removed files in his desk until his death and th at then the files were restored to the ir proper position, but that Morgan did not know of their ret urn until some years after. Mr. Mor­ gan, in answer to a question, stated that when he denied having been arrested or summoned into court as a defendant in various documents filed with the Federal Government, he believed th at his name was not listed in the Portland police files, but he added that this was no motivation. Mr. Morgan’s personnel folder reveals th at while the files were missing he received two appointments to Federal employment th at were made expressly “subject to investigation.” This was tru e of his first employment as a junior research ass istant with the Board of Investigation and Research. A notation on Civil Service Commission Form 1744, a filecard entitled “Temporary Employ­ ment, Not Through Certification” contains notations from which the following is extracted : “1-20-42—subject to chara cter investigation.” Under date of March 27, 1942, a Civil Service Form No. 3876, which was authority for tra nsfer under regulation 9 of section 3, authorized the tra nsfer of Mr. Morgan from the Board of Investigation and Research to the Office for Emergency Management where he was to serve as an assistan t business specialist at $2,600 per annum. The form contains this lan guage: “Subject to the following condition: investigation.” The first indication in the file of action to initia te an investigation apiiears as a letter under date of April 4,1942 , to th e Director of the FB I. The lette r st at es : “Dear Mr. Hoover : It is requested that a complete investigation be made of the above-named employee for the Office of Emergency Management and constituent agencies. The application form filled oitt by the employee is atta ched.” The employee is identified as “Howard Vincent Morgan, 1541 Key Boulevard, Arlington, Va., assistan t business specialist, Transfer 9067, Office of Defense Transportation.” On December 18,1949, which was after the death of Chief Niles (1946 or 1947) and restoration of the Portlan d police files, Mr. Morgan was appointed dis tric t supervisor for the Salem, Oreg., office f or U.S. Census. The notification of per­ sonnel action on form 50 on this date states th at the appointment is “subject to investigation.” An investigation was initiated under this employment by the 12th U.S. Civil Service Regional Loyalty Board but it was discontinued when Mr. Morgan resigned from this post 5 days after his appointment. This is shown by letter dated March 31, 1950, from the secreta ry of the regional loyalty board to the Chief, Personnel Division, Bureau of the Census, Washington, D.C. Possibly related to the discontinuance of the investigation was Mr. Morgan’s testimony, in answer to a question from Senator Ba rtlett, th at he had a friend in the Po rt­ land Police Department, a man with whom he used to play football, who phoned him on an other occasion while he was in the legislature and told him that politi­ cal operators were going through the police dep artm ent’s files looking for infor­ mation damaging to him. In his testimony before the committee, Mr. Morgan stated th at his employer in 1936 was Jac k R. Eatch. In his various applications for employment with the Federal Government, Mr. Morgan had never indicated Mr. Eatc h as his employer in 1936 nor did he tell until questioned th at he had been in business with Mr. Eatch. In his application and personal history statem ent on form OEM-2, under date of March 8,1932 , previously referre d to, Mr. Morgan stated that his employ­ ment from the summer of 1931 to Jun e 15, 1940, was with “various construction companies in various sections of the Pacific Northwest, in several capacities in connection with the operation of heavy duty dump trucks. I followed this work steadily for 9 years while attending school, full time in the summers and pa rt time in the school year. See attached note for a more complete explana tion.” The note rea ds as follow s: NO MINATIO N OF HOW ARD MORGAN 81

“note con cebning ex perie nc e “During the period from 1931 until my graduation from college in 1940 I worked for a very gre at many companies engaged in heavy construction on Bonneville and other large dams, and on highway projects throughout the Pacific Northwest. This work was in connection with the operation of heavy-duty dump trucks, and the capacities in which I served ranged from driver and mechanic to timekeeper, foreman, and supe rintendent. Due to the temporary nature of this work, and the number of companies by which I was employed (as many as 16 in a single period of 3 months), it would be quite impracticable for me to try to give a complete record, with names and dates, of my employ­ ment during this period. Many of the companies for which I worked were formed for only the one job, and are no longer in existence; some have moved to new localities and I do not know the ir present addresses; many of the men under whom I worked are now with other companies and cann ot be located without considerable effort; for some of the men I worked such a short period that they would not remember me, nor I them. “These practic al difficulties att endant upon the itine rant natu re of the occupa­ tion explain the vagueness of my fou rth item under ‘Article 31: Experience.’ If this information is absolutely necessary, please let me know and I will attempt to gather it. However, I hope this explana tion of the situ ation will suffice to cover the period.” On no other form was it necessary for Mr. Morgan to refer to his employment during 1936. Mr. Morgan stated in his testimony that whenever employed by the Federal Government, he had been sought out by the Government for employment. His official personnel file has indications to the contrary. His first employment by the Board of Investigation and Research appears to have aris en from a recommendation by Prof. Stuart Daggett, of the U niversity of California, in a letter dated October 23, 1941, which is cross-indexed in the Howard Morgan file. However, Mr. Morgan’s letter to Mr. Burton N. Beliling, Director of Research—Public Aids for the Board of Investigation and Research, under date of January 17, 1942, expressed eagerness to undertake the work. It reads in part "I am very much inte rested in the research position with the Board of Investigation and Research, about which you wrote to me on Jan uary 14. There will be no hesitation on my pa rt about accepting any such post * * *. I should welcome the opportunity to engage in the original research. * * ♦” Thereafter, the file indicates that Mr. Morgan sta rte d driving to Washington even before the appointment was approved. In a leter dated April 16, 1942, written by Howard V. Morgan to Mr. Joseph B. Eastman, Director, Office of Defense Transporta tion , Mr. Morgan stated in part as follow s: “I am the young man whose thesis you were kind enough to read and comment upon a yea r or so ago. About 3 months ago, you will recall, I w rote you a letter of application for employment in ODT. The lette r was passed on, with a memorandum from you, to Mr. Turney and then to Mr. Rogers fo r consideration, and the result is that I am now employed as an a ssista nt to Mr. Ray G. Atherton in the Motor Transpo rt Division.” In this connection, it should be pointed out that Mr. Morgan referre d in his testimony to his employment with Mr. Eastman in language implying that he was closely associated with him. The official personnel file indicates that his association may have been closer to someone else in the agency. For example, when he was interviewed for appointment as distric t supervisor, Salem, Oreg.. Office of the 1950 Census, the report of the interview by Russell Westberg, assistan t are a supervisor, Seattle, dated November 21, 1949, contains, in part, this lan guage: “He was employed for a few months in the Office of Defense Tra nsportatio n in 1942 as Assistant to the Chief of Freight Operations.” Furthermore, the form 57, which Mr. Morgan testified he filed after he had completed his consultant work in Alaska, states that from Janu ary 1942 to No­ vember 1942 he was a tra nsport economist with the Office of Defense Tran spo rta­ tion and that his immediate supervisor was E. J. Buhner, Chief, Fre ight Opera­ tions Section, Motor Tra nsportation Division, Office of Defense Transporta tion. His description of his work was th is : “My task was to assist the Chief of the Motor Freight Operation Section in the following m at te rs : Analysis of critical defense transp ortation problems, preparatio n of orders designed to conserve transport facilities, liaison with congressional spokesmen concerning those prob­ lems and or de rs; assisted the field offices all over the United States in adminis- 82 NOMINATIO N OF HOWARD MORGAN

tra tio n of ODT orders, handling of appeals from orders, etc.’’ (This form 57 is incorrect in stating that Mr. Morgan began his employment with the Office of Defense Tra nsportatio n in January 1942. As previously shown he did not st art work with the Office of Defense Transporta tion until March 30, 1942.) Of incidental interest is the fac t that his efficiency rating for his work with the Office of Defense Transporta tion from the period of his employment March 30, 1942, until his release on military furlough November 2, 1942, was “Good.” The available choices for the rating official were “Unsatisfactory,” “Fair,” “Good,” “Very Good,” and “Excellent.” Mr. Morgan’s testimony contained some allusion to his commissioned service in the Navy. It would appear from his official personnel folder th at his efforts to obtain employment in Washington began with Professor Daggett’s letter, which was written some 2 months before Pearl Harbor. His employment in Washington, after he transf erred to the Office of Defense Transporta tion , gave him a vantage point from which to seek his nav al commission. While he was still employed by the Office of Defense Transporta tion, the Navy requested that he be relieved as ass ista nt business specialist, Office of Defense Transporta tion , and assigned to the Bureau of Yards and Docks for the same services and at the same salary on a reimbursable basis. This loan of services was effective from September 22, 1942, until November 1. On November 2, 1942, Mr. Morgan was commissioned an ensign in the U.S. Naval Reserve and immediately pro­ ceeded to Cornell University at Itha ca, N.Y., for a 1-month indoctrin ation course. He was with the Bureau of Yards and Docks, U.S. Navy, until his tra nsfer to the Naval Air Transpo rt Service. By the end of his active duty in October 1945 he had been promoted to lieutenant, USNR. He was on term inal leave until February 1946. Although Mr. Howard Morgan has a fairly thick personnel file, one which contains six forms (for civilian service) on which he stated th at he had never been arre sted or summoned into court, his civilian Fed eral service totals less tha n a year. The dates are shown in the following ta bl e:

SUMMARY OF HOWARD V. MORGAN’S FEDERAL EMPLOYMENT February 9, 1942-March 30, 1942: Junio r research assistant, Board of In­ vestigation and Research, CAF-5, $2,000 per annum. March 30, 1942-Septemlier 22, 1942: Assistant business specialist. Office of De­ fense T ransportation, CAF-7, $2,600 per annum. September 22,1942-November 1,1942: Bureau of Yards and Docks, USN, assist­ ant business specialist, CAF-7, $2,600 per annum. (On reimbursable loan from ODT.) December 18, 1949-December 23, 1949: Adm inistrative assistan t (distric t su­ pervisor, Salem, Oreg., office) Bureau of the Census, Field Division, GS-301-9 $17.68 per day when actually employed ($4,600 per annum). November 29, 1952-December 31, 1952: Consultant, Office of Adm inistrator, Defense Tran spo rt Administration, $41.52 per day. Interm itte nt.

Mino rity S taff M emorandum R e B iog raphica l I nfo rmation S ubmitted to the Com mittee by H oward M organ To: Senator Andrew F. Schoeppel. From : John M. McElroy, A ssistant Chief Counsel. During his hearing on April 11, 1961, Mr. How ard Morgan stated, in response to a question by Senator Pastore, who was presiding, th at he was fam ilia r with the biographical statement submitted in his behalf and th at he had nothing to add to it. Morgan'8 statement Referrin g to the nominee, the statem ent says: “* * * he served under the direction of the late Joseph B. Eastm an in the Office of Defense T ransportation during 1941-42.” Facts Mr. Morgan’s official personnel folder contains documents showing that he served in the Office of Defense Transpo rtation from March 30, 1942, until Sep­ tember 22, 1942. His superior was E. J. Buhner, Chief, Fre igh t Operations Section, Motor Transpo rt Division, where a s a $2,600 per year assistan t business NOMINATIO N OF HOWARD MORGAN 83 spec ialist (CAF -7) he assisted Mr. Ray G. Atherton. He remained on the pay­ roll of the Office of Defense Transp ortation until November 1, 1942, but he was on duty with the Navy Bureau of Yards and Docks from September 22, until November 1. Maryan's stateme nt Mr. Morgan’s biographical statem ent further says: “After the w ar, he engaged in practice as transi>ortation consultan t, and in 1948 purchased a large livestock ranch. He has remained in this occupation since that time.” Facts The form 57 which Mr. Morgan filed in connection with his employment as a consultant on the Alcan Highway in 1952 sta tes that from February 1946 until November 1948 he was self-employed as a merchant or broker. He described the kind of business as “Purchase and sale of heavy construction machinery (tractor s, shovels, cranes, et c. )” and described the nature of his work in these wo rds: “This was a strictly temporary postwar operation based on sale of war- surp lus equipment during the period of acute shortage of heavy construction machinery in the civilian mark et. It was an outgrowth of my work as a naval officer in the heavy-equipment division of the Bureau of Yards and Docks (USN) during the war. The object was to acquire capital and tra nsfer it to long-term investment in a livestock ranch. It was successful.” From November 1948 until the time of filing the form in 1952, Mr. Morgan said he was self-employed and that the kind of business was a “700-acre live­ stock, grain and cover-crop seed producing farm.” He described the natur e of his work in these words: “I am responsible for all planning and direction of work on a large, diversified (but primarily livestock ran ch) and I perform a major pa rt of the year-round work myself. In addition, I serve in a voluntary capacity as transp ortation consultant to the Oregon State Grange, representing that organization before various commissions and in the Oregon Legislature, of which I have been a member (1 94 8- 50 ).” The report received by the committee from special information service of Dun & Brads treet, Inc., referring to Mr. Morgan, st at es : “During 194(5 to 1948 was engaged in buying and selling war surplus and construction and ind ust rial machinery in association with Jack R. Eatch in Portla nd.” Morgan's omissions The nominee appears to have avoided giving to the committee any informa­ tion which could lead the committee to know of his association with Jack R. Eatch, possibly because any check of the relation ship would have led to knowl­ edge of Mr. Morgan’s two arrests. Mr. Eatch was connected with the larceny charge as the signer of the affidavit published in Oregon and presented to com­ mittee members to explain the charge away. The affidavit was shown to Senators Pastore and Morton on April 11, 1961, and was put into the hearing record on May 2, 1961, after Mr. Morgan had been queried about the matter. Mr. Morgan also subm itted to committee members under date of May 1, 1961, in mimeographed form, his account of the assault incident in the following lan guage: “As many people in Oregon know, I worked my way through college in the construction camps of the Northwest. In 1936, when I was 22 yea rs old and working in one such camp during college vacation, there was a fist fight be­ tween two contractors, one of whom was my employer. After this fight had been underway for some 10 minutes, a truckd river working for the other contrac tor jumped on my employer’s back and began choking him. I pulled the man off and dumped him on the ground so the fight could continue, which it did. This incident didn’t at trac t much atte ntion at the time, but later the third man in the fight brought a complaint aga inst me before a local justice of the peace. “I was summoned to a hearing before the justice of the peace where I de­ scribed the incident and maintained th at all I had done was to protect a man from unfai r and unreaso nable attack and th at my efforts had ceased as soon as the third man ceased atta cking a man unable to defend himself aga inst two assailants. “Other witnesses verified my statements. “The justice of the peace, who seemed more fam iliar with the complainant tha n with the law or commonsense, then asked me whether my employer had requested me to remove the truckdriver from his back and I replied th at he had 84 NO MINATIO N OF HOW ARD MORGAN been too busy defending himself ag ain st two attackers to hold a conference with me. The J.P. then announced th at un der the law I should have waited for such a request and tha t my fa ilure to do so would cost me $25. “That was a lot of money in 1936, especially to a college student, but I paid it cheerfully, marked it up to experience, and forgot the matter except to resolve to stay away from justices of the peace which I have done religiously since.” It is notable that neither in the foregoing statement nor in his testim ony to the committee on May 2 did Mr. Morgan name the contractor whom he said he tried to help in the fight. The Dun & Bradstreet report above mentioned states “* ♦ * Morgan was fined $25 for his participatio n in an altercation th at occurred during Morgan’s summer employment while atte nding college. Morgan’s em­ ployer a t tha t time was also Jack R. Eatch. * * *” In answer to a direct question during the May 2 hearing, Mr. Morgan stated that his employer in 1936 was Jack R. Eatch. In this connection it should be recalled, as pointed out in the staff memorandum relating to Mr. Morgan’s official personnel folder, th at Mr. Morgan also avoided identifying his relationship with Jac k R. Eatch in any of the personnel forms filed w ith the Government. Neither in his biographical statement nor in his let ter to the committee pur­ porting to list his financial holdings did Mr. Morgan reveal th at he is currently associated in business with Jack R. Eatch. When it was called to his attention during the May 2 bearing that the Portla nd City Directory lists Eatch as presi­ dent of Pioneer Construction Co. and Morgan as secretary-treasurer, Morgan said he had not mentioned the ma tter because the money invested was his wife’s. However, in a supplemental report dated May 3, 1961, Dun & Bradstreet states the following: “Howard Morgan holds the office of sec retary-tre asu rer of Pioneer Construc­ tion Co. (In c.). The other officers are Jac k R. Eatch, president; Lena Eatch, vice presid ent; and the directors are composed of the officers and Alfred Corbett. Howard Morgan and his brother-in-law, Alfred Corbett, jointly hold one-third of the outstanding cap ital stock of Pioneer Construction. Morgan and Corbett are reported to have acquired the ir interests in the company March 1, 1960, but the amount of money they invested has not been disclosed. “Pioneer Construction Co. is an Oregon corporation cha rtered December 9, 1959, with authorized capital stock of $50,000 comprised of no-par-value common stock. Corporation is engaged in rock crushing work and as a demolition con­ tractor. Headq uarters are at Portland, Oreg. “Morgan is said to have never been active in the operation s of the company other than in a n advisory capacity.” APPENDIX

T he Dalles, O reg., April 25, 1961. J ohn M. McElroy, Assista nt Chief Counsel, U.8. Senate Committee on Comerce, Washington, D.C.: Repeat on wire of April 21, 1961, search of The Dalles Police Department records reflects only the following which appears in Dalles City Police Register “No. A392, na me: Howard Vincent Morgan, age 22, height 6, weight 165, build medium, hair brown, eyes brown, complexion dark , born at Tillamook, Oreg. Date received February 9, 1936, should be 1937; crime committed, hold for State police; released to State police on February 10, 1937, by municipal judge, J. H. Steers,” now deceased. No f urther charges or disposition noted in police files, and cou rt is not a court of record. FBI, Portlan d, Oreg., have above infor­ mation also. R. W. Brower, Chief of Police. 86 NOMINATIO N OF HOW ARD MORGAN

I c e r tif y th at th ia ^.a a true copy of th e orig in a l form in th e f i l e s of th e Po rtland P olice Bureau*

Notary Pub lic fo r Oregon My Commission Ex piree October 1.19 61

DEPARTMENT OF PUBLIC SAFETY burcau or rouct NV 15624 IDENTIFICATION SHEET

Name Howard Vincent Morgan A Hat ------j------Residence Larrabe H ote l, City Age 23 APr- Age Hgt. 5 - l l i Wgt. 162 Byet Bin Haif Ryr, qot Ty

Complex. Bed Build M 8 i Nativ. Oregon Op” - Co ne truo tio n wkr.

H I ------

PPG 20 6 U 010. 12 . t 3 w -I JLlil

Arrested P e b . r 7 , 37 bv Krd itee lran -P ater sn n Charge Fu g. M au pin, O re . \Dispo. Re leased to Sta te. P o li o s on 2-9-137 'History Accu sed o f ste a li n g t ir e s and o i l from a se n d e e sta ti o n in Manrin,; Ore,...... ,...... *

Richards-Harms 2-8 -3 1. NO MINA TIO N OF HOW ARD MORGAN 87

STATE OF OREGON ) ) ss COUNTY OF MULTNOMAH )

I he reby c e r tif y th a t th e fo re goin g copy o f pag e 1 1 of th e Crim in al Docket o f th e M un ic ipal C ourt , C ity o f P o rt la n d , S ta te o f Oregon, date d Fe br ua ry 8 , 19 37, sh eet #3 has be en compared by me w it h th e o rig in a l, and i t is a tr u e , fu ll and co mplete cop y of th e o rig in a l.

Date d th is 6th da y o f Feb ru ar y A.D. 19 61 .

Wayne L. S u ll iv a n N ot ar y P u b li c, S ta te o f Oregon Jfy com mis sion ex p ir es O ct . 3 , 1961i. I here by c e r tif y th a t th e fo re goin g copy of th re e (3) sep ara te f i l e card s from th e f i l e s o f th e Re cords D iv is io n , Bu rea u o f P o li c e , P o rt la n d , Or egon, ha s be en com par ed by me w ith th e o r ig in a ls , and i t i s a tr u e , f u l l and co mplete copy of th e o rig in a ls of sa id file .in d e x c a rd s. Date d th is 6th da y o f Feb ru ar y A.D. 19 61 .

Notar y P u b li c , S ta te o f Ore gon J?y comm ission ex p ir es O ct, 3, 196U.

2-7 -3 7 348 FUGITIVE MAUPIN OREGON

MORGAN. How ard V J r . NE H oll aday 4 L arr ab ee

23 Amer habr

MoUeeken & P e to ra o n 88 -6 3' 00 00 IN THE MUNICIPAL COURT OF THE CITY OF PORTLAND MULTNOMAH COUNTY. STATE OF OREGON

S h o o t # 3

J U M I OF TM1 MUNICIPA L COU RT OF PORTLAND. OREGON ANO EX -OFFICIO JURTICE OF T N I P IA C I FSBRUARX 8.1957 O R IG IN A L R E C O R D

coMrt-Ai.'fi DEFENDANT O r r iC U MAKIMQ COMPLAINT CH AAOID WITH CRIMK OF (V /f C O p M IT T X/ 7 / / MORGAN HOWARD OF ATION NOMIN Da niel D. Owene 1 / 2 5 Purc el l Reck D riv. (Wolfe) B d . Vo Leo DeLaney 12/28 Buhite " (Lo nerg an) B d .

«- tn nn n> 4 )HH»STATE*i> «■«-»»*•

F r a n k M c K in n o n F.H. B ro w n Drive while Intox. (City) B a i l . cuH u * CO— f t . J C * , E d i t h K y le (W) T o d d - H a l l O t t o P a y n e Lar. by embezzlement -foal-’ X' 7 " \ C » / < - ^ 7 a U “ G r i f f i t h G r i f f i t h No L i e . No O p r . L i e . /Z -7 A lbert Dorfman R e c o g , rift *5- W ad e ,F . H am p to n K e n n e d y T r o u t Drive while intox. 4 0 0 . v - f f c , " E a d e e C O M M IT T E D W m .M c F a ll @ K e n n e tl L .K .E v a n s C.R.M iller L a r c e n y ^0, C a l la w a y & Wm. K l a u s Roberta-Fergx son-Nelson-Keegi n Lar, of auto (Rebook) Sgt.Schum-Bu < holtz-Foote-N i c l o l s - E t a l N e l s o n Gay Tutner-Reed-: hA ffer-Carlton A ssault with a dang.weapon -

H o w a rd V .M o rg a n M cM eeken P e t e r s o n Fug. Maupin, Ore. Hold for D ept.Justice Delmar Robinson " G o l t s " R o b in s o n State Vag.Defraud innkeeper R e b o o k 2. -

Jerry Anderson S t a t e V a g . H o ld F o r H .D .

P A t /pB b .B ^ a Tl ------— Pag e 114 NOMINATION OF HOWARD MORGAN 89

Excekpt F rom U nited States Code R ela ting to F als e Statem ent s Whoever, in any ma tter within the jurisdiction of any departm ent or agency of the United States knowingly and willfully falsifies, conceals or covers up by any trick, scheme, or device a material fact, or makes any false, fictitious, or fraudule nt statem ents or represen tations, or makes or uses any false writing or document knowing the same to contain any false, fictitious or fraudulent sta te­ ment or entry, shall be fined not more than $10,000 or imprisoned not more than 5 years, or both (18 U.S.C. 1001).

k SWatv